Download
AMCHAM
calls for IT rules reforms to enhance global financial competitiveness
By Sarah Chea, Korea JoongAng Daily - While
Korea has recently stepped up its push to join the Morgan Stanley Capital
International Developed Markets Index, the American Chamber of Commerce in
Korea (Amcham) has called for reforms to the country’s information technology
network separation rules and greater flexibility in its real-name verification
system, arguing that such changes are essential to strengthening its global
financial competitiveness.
Amcham Korea on Wednesday released a
report called Korea’s Financial Hub Agenda, which examines regulatory areas in
the banking and securities sectors where Korea’s regulatory framework differs
from global standards. It identified 39 regulatory issues, including 15
cross-sector issues, 13 banking-sector issues and 11 securities-sector issues,
with 10 priority reforms identified as areas where policy improvements could
significantly enhance Korea’s attractiveness to global financial institutions.
Foremost among the priorities is the
easing of Korea’s stringent IT network separation rules, which were first
introduced in 2014 after a major cyberattack in 2013 crippled the systems of
several domestic banks. Foreign financial firms, however, have increasingly
argued that the framework prevents them from aligning their IT infrastructure
with that of their global headquarters, complicating timely security updates
and hindering the adoption of emerging technologies such as AI and cloud
computing.
The report also emphasized the urgency
of reforming Korea’s real-name verification regime, where Korea maintains an
additional, country-specific real-name verification system under its law. This
dual structure, it notes, diverges from international practice and poses
practical challenges, particularly in verifying foreign corporate entities.
Thanks to President Lee Jae Myung's push
to boost the stock market, the Korea Exchange has become the world’s
ninth-largest stock exchange by market capitalization.
“With the Kospi having recently
surpassed the 6,000 mark, Korea is demonstrating strong momentum as a potential
regional financial hub," Amcham Chairman & CEO James Kim said.
"Building on this momentum will require aligning Korea’s regulatory
framework more closely with global standards and reinforcing its position as an
attractive and reliable capital market for international investors.”
