The financial business scope of fintech and Big Tech is rapidly expanding beyond payments and transfers into identity verification, offline payments, venture capital and corporate finance.
Toss, Kakao Pay and Naver Pay have strengthened their ability to verify identities and prevent financial fraud in non-face-to-face financial transactions after gaining access to a government network that verifies the authenticity of resident registration cards.
Electronic financial business operators can also compare resident registration card photos and issuance information with government data, a move expected to help block account openings and financial crimes using forged or altered IDs.
Naver Pay also launched Npay Startup with the Financial Supervisory Service to link investors, fund managers and startups, seeking to reduce information asymmetry in the venture investment market.
Kakao Pay Securities can expand its business scope into core tasks of traditional securities firms, including IPO underwriting, public offering share purchases and subscription services, after obtaining approval for an investment dealing business.
Offline, Toss and Naver Pay are competing to secure terminals and merchants by promoting face payment.
As platform firms use the same infrastructure as financial companies and expand payment and investment functions, the business boundary with traditional finance is also rapidly breaking down.
• Toss, Kakao Pay and Naver Pay expand use of resident registration card authenticity verification network
• Face payment gains traction; Naver vs Toss competition for infrastructure intensifies
• Naver Pay launches venture capital platform, widening access to startup investment
• Kakao Pay Securities wins investment dealing approval, opening path for IPO underwriting and purchases
Financial holding companies and banks are overhauling management strategies for the second half while speeding up efforts to expand their customer base, strengthen cooperation among affiliates and push digital transformation.
KB Financial Group held a management workshop for the second half and detailed execution tasks for key businesses such as wealth management, corporate and investment banking and artificial intelligence.
Shinhan Bank presented “wide and deep” as its core strategy for the second half to broaden customer touchpoints and deepen relationships. It decided to pursue sales and operational innovation using Shinhan Super SOL and AI agents.
Marking its 44th anniversary, Shinhan Bank again stressed customer focus and its founding spirit. It set a direction to build a sustainable growth foundation based on financial consumer protection and internal controls.
Hana Financial Group completed construction of its Group Headquarters in Cheongna, Incheon. It will gradually relocate about 2,200 employees from 10 affiliates to create a financial hub of about 4,000 people including existing staff.
As the financial sector reorganises organisations, space and digital infrastructure at the same time, competition to secure customers, generate affiliate synergies and boost AI-based productivity is expected to intensify in the second half.
• KB Financial Group holds second-half management workshop, detailing WM, CIB and AI execution tasks
• Shinhan Bank holds second-half strategy meeting, speeds up customer base expansion
• Shinhan Bank marks 44th anniversary; CEO Jeong Sang-hyeok (정상혁) says the founding spirit and meaning of customers must be remembered
• Hana Financial accelerates its “Cheongna era” as 4,000 financial workers gather
As the rise in household loans accelerates again, banks are raising lending thresholds. Financial authorities are also pursuing policies to complement financial access for regions and vulnerable groups.
Household loans across the financial sector rose 8.3 trillion won in June. The increase at banks was 7.6 trillion won, up 700 billion won from the previous month. Growth in mortgage loans also increased to 4.5 trillion won.
KB Kookmin Bank lowered the maximum limit for home purchase loans to 300 million won. Shinhan Bank halted applications through loan brokers, as banks’ own moves to tighten lending spread.
Financial authorities decided to expand offline financial access points by having post offices handle consultations and applications for unsecured loans and Saehuimang Holssi loans from the four major banks in areas where bank branches have declined.
They also plan to push joint lending in which regional banks and internet banks split screening and funding to improve loan access for regional small and midsize companies and sole proprietors.
Post Office Insurance linked Silson24 to its mobile app so customers can handle everything from checking treatment records to filing insurance claims without installing a separate app or attaching documents.
• Household lending tightened further as limits are lowered and controls strengthened
• Bank household loans rise 7.6 trillion won, with mortgage loan increase widening
• Filling regional financial gaps as post office counters and internet bank apps roll out joint lending
• Post Office Insurance app allows Silson24 applications, simplifying insurance claims
Financial authorities plan to reduce constraints on the use of AI and cloud services by checking financial companies’ and Big Tech firms’ response systems and internal controls for IT disruptions and preparing a plan to fully overhaul network separation regulations.
With a 24-hour foreign exchange trading system now in operation, securities firms are also being required to build round-the-clock management systems to respond to overnight exchange rate swings, settlement risks and system disruptions.
Some point out that while regulatory easing broadens the scope of digital finance, IT stability and consumer protection capabilities must support it.
• Financial Services Commission Chairman Lee Eok-won (이억원) says plan to fully lift network separation will be announced soon
• 24-hour FX market begins; securities firms face a test of risk management
With volatility in capital markets increasing, financial authorities are speeding up institutional improvements to protect investors and establish market order.
As 24-hour FX market operations raise the burden on securities firms to manage overnight exchange rate and settlement risks, authorities are also reviewing measures to raise listing thresholds and management standards for single-stock leveraged ETFs.
The joint response team for stock price manipulation identified about 10 cases of unfair trading in its first year. Measures are also being pursued to strengthen shareholder consent procedures for duplicate listings of subsidiaries created through physical spin-offs.
A stance is becoming clearer to maintain market innovation while pre-emptively controlling excessive leverage, unfair trading and the risk of damage to corporate governance.
• 24-hour FX market begins; securities firms face a test of risk management
• Will single-stock leveraged ETFs face higher hurdles? Financial authorities begin system improvements
• Is volatility driven by single-stock leverage? Management comes before delisting
• Stock manipulation joint response team reviews first year, identifies about 10 unfair trading cases
• Duplicate listings to face stricter rules, with shareholder consent required for subsidiaries spun off through physical splits
Other major moves in the finance and fintech sectors were also summarised.
Financial groups and banks are stepping up support for small and midsize companies, debt restructuring for vulnerable groups and expansion of regional financial hubs, while also strengthening venture investment and senior-focused financial services.
KB Financial Group is expanding industrial safety infrastructure and a financial hub in North Jeolla province, while KB Kookmin Bank will cut principal on special bonds held by vulnerable groups by up to 90 percent. Shinhan Financial Group formed a 100 billion won venture master fund, and Shinhan Bank revamped “Shinhan Homebank” to strengthen senior-tailored content.
• KB Financial Group and Korea SMEs and Startups Agency support industrial safety infrastructure for 950 small and midsize companies
• KB Kookmin Bank to cut principal on special bonds for vulnerable groups by up to 90 percent
• KB Financial Group opens “North Jeolla KB Financial Town” as asset management hub begins operations
• Shinhan Financial Group forms 100 billion won venture master fund, saying it will invest in future growth industries
• Shinhan Bank revamps “Shinhan Homebank,” expanding senior-tailored content
Hana Financial Group is fully launching its Cheongna financial hub and will provide 100 billion won in guarantee support for semiconductor materials, parts and equipment companies. Woori Financial Group moved to foster young IT talent, and Woori Bank raised $275 million at overseas branches.
• Hana Financial accelerates its “Cheongna era” as 4,000 financial workers gather
• Hana Bank supports 100 billion won in agreement guarantees for semiconductor materials, parts and equipment companies
• Woori Financial Group to foster young IT talent with participation from 8 group affiliates
• Woori Bank directly issues foreign currency bonds at overseas branches, raising $275 million
Internet banks are widening their growth base centred on overseas digital finance cooperation, loans to sole proprietors and everyday financial services.
Kakao Bank has stepped up cooperation with Mongolia’s M Bank, and K Bank’s cumulative lending to sole proprietors surpassed 5 trillion won. Toss Bank expanded its customer base after securing 10 million check card customers.
• Kakao Bank steps up digital finance cooperation with Mongolia’s M Bank
• K Bank’s sole proprietor loans surpass 5 trillion won, supplying 1.52 trillion won in the first half of this year
• Toss Bank’s check card customers surpass 10 million