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S. Korea to lower barriers to entering financial sector

All Headlines 15:57 July 02, 2018

SEOUL, July 2 (Yonhap) -- South Korea will lower barriers to entering the local financial industry and approve new licensed companies in a bid to promote competition and innovation in the long-sluggish sector, the financial regulator said Monday.

Earlier, the Financial Services Commission (FSC) set up a review panel that examines obstacles that prevent new competitors from entering the banking, insurance and brokerage sectors in South Korea.

It will check the number of institutions operating in a sector and their total assets to measure market saturation. Legal and administrative regulations and consumer satisfaction are also evaluation indices.

In its kick-off meeting on Monday, the panel decided to look into the insurance and real estate trust sectors first, which have had high entry barriers and no new players for years.

After the review wraps up next month, the FSC will give out licenses to new insurers and trust companies.

In the fourth quarter, the panel will review the banking and financial investment business.

"We will bring competition and innovation to the financial industry, which has been basking in the exclusive license system," FSC Chairman Choi Jong-ku said in the meeting. "The market opening will also contribute to the creation of decent jobs for young people."

Financial Services Commission Chairman Choi Jong-ku speaks at a kick-off meeting of a review panel on financial competition in Seoul on July 2, 2018. (Yonhap)

brk@yna.co.kr
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