On April 16, 2013, the Financial Services Commission (“FSC”) proposed draft Regulations on the Delegation of Information Processing and IT Facilities of Financial Companies (the “Regulations”).
Currently, the delegation of information processing and use of offshore IT facilities are permitted on a very limited basis pursuant to the Regulations on Delegation of Businesses of Financial Institutions. In contrast, such delegation has been widely permitted in other jurisdictions. In addition, each of the Korea-EU FTA and the Korea-US FTA contemplates the transfer of information to be permitted within two years from the date on which each of the Korea-EU FTA (July 1, 2011 ~ June 30, 2013) and the Korea-US FTA (Mar. 15, 2012 ~ Mar. 14, 2014) took effect. Accordingly, there is a need for certain measures to be put in place for the overseas transfer of information required for data processing of financial companies.
The following is a summary of the proposed Regulations.
- Permitted Scope and Delegation Procedures
- Protection of Entrusted Information
- Overseas Delegation of IT Facilities
- Prior Notice of Changes in Other Regulations
