The banking sector plans to request the new government to allow entry into the virtual asset industry. There are also plans to propose measures that would enable banks to enter non-financial sectors and delegate investment advisory services.
According to the financial sector on the 3rd, the Korea Federation of Banks prepared a draft titled 'Key Requests from the Banking Sector' through a meeting of bank executives at the end of last month. The banking sector will convey the final requests after gathering additional opinions when the new government takes office following the voting.
In the requests, banks argued that the absence of the virtual asset industry in the scope of bank operations under financial laws is problematic and called for improvements to the system. Banks want to provide services focused on custodial operations, such as managing and storing digital assets, but under current laws, banks cannot directly engage in the virtual asset industry.
The entry of banks into non-financial sectors was also included in the requests. While so-called 'big tech' companies are presenting innovative services by merging finance and non-finance based on relaxed regulations, banks, which are subject to stringent regulations, are finding it difficult to enter other industries, raising concerns about equity.
Opinions were also expressed that, like in the U.S., investment advisory services should be allowed, or if full permission is difficult, at least to designate public funds as targets for investment advisory services and to expand the scope of trust functions to respond to the demand for asset management due to the aging population.
There was also a stance that the sanctioning method needs to change. The Banking Act broadly defines the grounds for sanctions against financial companies or their employees, making it difficult to predict which actions are subject to sanctions, hence the intention to specifically enumerate sanction grounds related to legal obligations.