November 29, 2024

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Naver headquarters in Seongnam, Gyeonggi Province. (Naver)

South Korea’s top financial watchdog said Tuesday it is seeking to support fair competition between fintech firms like Naver and Kakao.

“Our hope is that all these companies meeting with us today help to cultivate a fair and transparent environment,” Gov. Lee Bok-hyun of the Financial Supervisory Service said at a meeting with the chief executives at the local tech firms.

Discussing measures to make that happen, Lee and the companies talked about if the firms are charging small businesses too much for using their online platform. Those businesses and their supporters have complained that the fees are more than they could bear.

“We’re fully aware that there are voices regarding the issue and that we intend to make the companies post the fees, publicly,” Lee said. But he stressed his agency would not hamper any market dynamics in play that contribute to the “fair amount,” saying posting fees will take place only after discussing the matter with the companies.

Lee, a former prosecutor versed in white collar crime, highlighted data privacy, urging the fintech firms to pay just as much attention to consumer protection as they would do toward their business expansion.

“The ecosystem we’re building here is new and one that requires to work with one another,” Lee said. “The agency in the meantime will work to make rules more favorable to that end.”

By Choi Si-young (siyoungchoi@heraldcorp.com)