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Financial watchdog urges tougher fintech security

All News 09:10 September 02, 2016

SEOUL, Sept. 2 (Yonhap) -- The head of South Korea's financial watchdog on Friday called for local financial services firms to beef up security-related measures for their fast-developing fintech operations.

"Responsible innovation is needed in the financial industry," Financial Supervisory Service (FSS) Governor Zhin Woong-seob said in a forum hosted by the Korea Institute of Finance.

Fintech, he pointed out, is a key tool for the innovation of financial companies but also can be a potential threat to the financial system if not properly handled.

"In particular, (we) have to deal actively with the possibility of the leak of biometric data," he emphasized. "In the case of robo-advisors, (we) should deal with the possibility of external hacking and misdeeds by internal workers."

Zhin Woong-seob, governor of Financial Supervisory Service (FSS), speaks at a breakfast forum in Seoul on Sept. 2, 2016. (Yonhap)

The use of biometrics authentication using fingerprints, irises and other physical information is spreading. The government is also preparing to introduce a full-scale robo-advisor system for investors.

Zhin urged the management of financial firms to push for the stability of the financial system together with the pursuit of innovation.

"In new businesses like fintech, the management should directly handle relevant risks," he said.


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