South Korea will establish an open banking system in December. The country's Financial Services Commission (FSC) is planning to review potential participants' security records prior to this date while testing the system in October. In a statement released on Monday, FSC Chairman Kim Dong-yeon said that banks should be required to conduct background checks of customers and report suspicious transactions within 24 hours. The FSC will receive applications from financial start-ups during July. The plan is for the open banking system to operate 24 hours a day, save for a 20-minute period of downtime to facilitate security monitoring.
South Korea will establish an open banking system in December. The country's Financial Services Commission (FSC) is planning to review potential participants' security records prior to this date while testing the system in October. Both established banks and emerging fintech companies will be able to participate in the initiative. The FSC will receive applications from financial start-ups during July. The plan is for the open banking system to operate 24 hours a day, save for a 20-minute period of downtime to facilitate security monitoring.