Using the Financial Regulatory Sandbox, financial service providers can test new financial services by allowing customers to use those new services. Financial authorities then receive the opportunity to improve the related programs and regulations based on the results from the testing of the new services.
Overview
The Fourth Industrial Revolution is powered by the advances in information and communications technology and is now presenting a new paradigm in the financial sector. This is compounded by the convergence of innovative business models that exist outside the conventional framework are leading to structural changes in the financial industry.
Amidst such changes, however, stringent approval standards and a wide range of business regulations have hampered the launch of new financial services. To better respond to the changes in the financial industry and resolve the difficulties in commercialization caused by regulations, the Korean government enacted the Special Act on Support for Financial Innovation, which came into effect on April 1, 2019, and introduced the financial regulatory sandbox program. The financial regulatory sandbox is a program aimed at designing safe and precise financial regulations, while considering public values such as fostering new industries and protecting consumers at the same time.
The Financial Services Commission (FSC) will help present new financial services to the market and improve financial regulations through the financial regulatory sandbox in order to propel innovation.
Background
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Fintech support policies actively implemented by governments around the world
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Rapid growth of the fintech industry
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Stringent regulations against financial firms
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Poor utilization and competitiveness of fintech
Program Direction
History
| 2022 | Dec. 21 | The 7th Innovative Finance Review Committee (designation of 5 services) |
|---|---|---|
| Nov. 09 | The 6th Innovative Finance Review Committee (designation of 8 services) | |
| Sep. 07 | The 5th Innovative Finance Review Committee (designation of 13 services) | |
| Jun. 09 | The 4th Innovative Finance Review Committee (requests for regulatory enhancement) | |
| May. 25 | The 3rd Innovative Finance Review Committee (extension of designation period) | |
| Mar. 30 | The 2nd Innovative Finance Review Committee (designation of 1 service) | |
| Feb. 16 | The 1st Innovative Finance Review Committee (designation of 25 service) | |
| 2021 | Nov. 12 | The 10th Innovative Finance Review Committee (designation of 31 services) |
| Oct. 13 | The 9th Innovative Finance Review Committee (designation of 1 service) | |
| Sep. 29 | The 8th Innovative Finance Review Committee (extension of designation period) | |
| Sep. 08 | The 7th Innovative Finance Review Committee (extension of designation period) | |
| Jul. 21 | The 6th Innovative Finance Review Committee (designation of 8 services) | |
| Jul. 21 | Revision to the 「Special Act on Financial Innovation Support」 came into effect on 21, July 2021. | |
| Jun. 09 | The 5th Innovative Finance Review Committee (Modification of Innovative Financial Service) | |
| May. 26 | The 4th Innovative Finance Review Committee (designation of 3 services) | |
| Apr. 14 | The 3rd Innovative Finance Review Committee (designation of 3 services) | |
| Mar. 24 | National Assembly passed a revision to the 「Special Act on Financial Innovation Support」 | |
| Feb. 18 | The 2nd Innovative Finance Review Committee (designation of 2 services) | |
| Jan. 27 | The 1st Innovative Finance Review Committee (designation of 2 services) | |
| 2020 | Dec. 22 | The 8th Innovative Finance Review Committee (designation of 15 services) |
| Nov. 18 | The 7th Innovative Finance Review Committee (designation of 5 services) | |
| Sep. 23 | The 6th Innovative Finance Review Committee (designation of 5 services) | |
| Jul. 22 | The 5th Innovative Finance Review Committee (designation of 4 services) | |
| May. 27 | The 4th Innovative Finance Review Committee (designation of 4 services) | |
| Apr. 01 | The 3rd Innovative Finance Review Committee (designation of 9 services) | |
| Mar. 18 | The 2nd Innovative Finance Review Committee (designation of 7 services) | |
| Feb. 19 | The 1st Innovative Finance Review Committee (designation of 9 services) | |
| 2019 | Dec. 18 | The 11th Innovative Finance Review Committee (designation of 9 services) |
| Nov. 20 | The 10th Innovative Finance Review Committee (designation of 8 services) | |
| Nov. 06 | The 9th Innovative Finance Review Committee (designation of 7 services) | |
| Oct. 02 | The 8th Innovative Finance Review Committee (designation of 11 services) | |
| Jul. 24 | The 7th Innovative Finance Review Committee (designation of 5 services) | |
| Jun. 26 | The 6th Innovative Finance Review Committee (designation of 5 services) | |
| Jun. 12 | The 5th Innovative Finance Review Committee (designation of 6 services) | |
| May. 15 | The 4th Innovative Finance Review Committee (designation of 8 services) | |
| May. 02 | The 3rd Innovative Finance Review Committee (designation of 9 services) | |
| Apr. 17 | The 2nd Innovative Finance Review Committee (designation of 9 services) | |
| Apr. 01 | Enforcement of the 「Special Act on Support for Financial Innovation」 and the 1st Innovative Finance Review Committee | |
| Mar. 20 | Resolution on the Regulations on the Operation of Innovative Financial Service Review Committee by the Financial Services Commission | |
| Mar. 19 | Resolution on the proposed Enforcement Decree of the Special Act on Support for Financial Innovation by the Cabinet | |
| 2018 | Dec. 31 | Promulgation of the bill |
| Dec. 07 | Resolution by the National Assembly of the Republic of Korea | |
| Dec. 05 | Resolution by the Legislation and Judiciary Committee of the National Assembly of the Republic of Korea | |
| Nov. 28 | Resolution by the National Policy Committee of the National Assembly of the Republic of Korea | |
| Mar. 06 | Proposal of the enactment of Special Act on Support for Financial Innovation for the introduction of the financial regulatory sandbox |