|FSC Chairman Choi Jong-ku delivers congratulatory remarks on the scheduled launch of Open Banking at the Korea Federation of Banks, April 15. Yonhap|
An "open banking" service, a comprehensive joint payment system enabling closer integration among banks and fintechs, will make its debut in December, the government said Monday.
The Financial Supervisory Service (FSC) said under the new system named Open Banking, customers will be able to transfer cash using any app operated by any banks or fintech firms with a fee of up to 50 won ($0.04).
The amount is about a 10th of the current 500 won customers have to pay for each transfer made between different banks.
The decision followed a two-month deliberation among 18 banks, the FSC and Korea Institute of Finance (KIF), Financial Security Institute, Korea Federation of Banks and Korea Financial Telecommunications & Clearings Institute.
"No outstanding car can show its performance without basic infrastructure such as highways," FSC Chairman Choi Jong-ku said in his congratulatory remarks.
"Now that the new innovative system is set to begin implementation, more innovative services will likely be in the market."
A working-level consultative body will continue running tests to find any operational defects in the new system between May and October, following the establishment of necessary infrastructure.
A pilot operation will follow in October before the full implementation in December.
The transfer fee will be finalized based on the cost needed to operate the application programming interface (API), an intermediary that enables a software program to interact with other software.
The API will allow cash transfers simply by entering words into the operating system.
An around-the-clock risk management system will be in full operation to deal with possible system malfunctions or shutdowns as well as to improve overall system security and data protection.
The FSC said system stability will be improved so that a far greater number of people can use it at the same time without problem.