Dongchul Lee, Credit Finance Association President, to Hold Capital Industry Meeting Following New Tech Finance Talks... Focus on AI Management and Deregulation

Consecutive Meetings Within a Month of Inauguration
Active Dialogue With Authorities... Industry 'Welcomes' the Move

It has been confirmed that Dongchul Lee, President of the Korea Federation of Credit Finance Associations, will host a meeting with the capital industry next week, following a prior discussion with the new technology finance sector. A senior official from the financial supervisory authority will attend the meeting to listen to industry concerns and exchange opinions on artificial intelligence (AI) risk management frameworks.

Dongcheol Lee, Chairman of the Korea Credit Finance Association. Korea Credit Finance Association

According to the financial industry on July 15, President Lee will hold a breakfast meeting with chief executive officers (CEOs) of capital companies on July 21 at The Plaza Hotel in Jung-gu, Seoul. The meeting will be attended by 24 capital company CEOs and a deputy governor of the Financial Supervisory Service. Unlike the official meeting held on July 9 with leaders of new technology finance companies, which was organized by the financial authorities, this event is characterized as an informal introductory gathering combined with breakfast.

The main agenda items for the meeting include: ▲ adoption and application of AI risk management frameworks (RMF) for capital companies; ▲ requests for permission for capital companies to engage in insurance agency business; and ▲ easing of regulations on the leasing and rental businesses of capital companies.

First, an official from the Financial Supervisory Service is scheduled to deliver guidance on AI RMF to the industry. Previously, on January 15, the Financial Supervisory Service announced its plan to introduce AI RMF to the financial sector. Subsequently, Daeyoung Kwon, Vice Chairman of the Financial Services Commission, held an on-site meeting on artificial intelligence transformation (AX) in the financial sector on June 18 and announced the implementation of the ‘AI Guidelines for the Financial Sector’ from June 22. As a result, the AI RMF guidelines prepared by the Financial Supervisory Service and the AI security guidelines organized by the Korea Financial Telecommunications and Clearings Institute were distributed throughout the financial industry.

An industry representative commented, “AI usage in the capital sector is lower than in the banking industry, and understanding of AI RMF is also limited. Therefore, it appears that the supervisory officials will explain AI risk management guidance to capital companies directly at the meeting.”

CEOs of capital companies are expected to express industry difficulties regarding the approval of insurance agency business and the relaxation of regulations on leasing and rental businesses to President Lee and the Financial Supervisory Service officials. In particular, there is substantial industry interest in easing regulations on leasing and rental businesses, as there has been little progress since the Financial Services Commission announced a review of regulatory improvements in November last year.

At that time, Eogwon Lee, then Vice Chairman of the Financial Services Commission, stated during a meeting with CEOs of credit finance companies, “If new business ideas are proposed to improve corporate productivity and enhance convenience for the public, we will proactively consider various regulatory improvement measures, including easing the upper limit for rental businesses.”

The capital industry believes that, since this meeting marks the first informal introduction following the inauguration of the new president of the association, it may be difficult to engage in detailed and in-depth discussions on key issues with the supervisory authorities. However, the industry has expressed encouragement at the fact that since the new president took office, meetings and communication with regulators have been held in quick succession.

Another industry official stated, “The Korea Federation of Credit Finance Associations covers cards, capital, and new technology finance sectors, and because each sector faces very different issues, the speed of communicating and implementing policy suggestions may not always meet expectations. Nevertheless, it is positive that communication with regulators is ongoing from the very start of the new president’s term.”

This content was produced with the assistance of AI translation services.