SEOUL, May 08 (AJP) - The Korea Financial Telecommunications and Clearings Institute (KFTC) will establish a digital hub for cross-border retail payments using QR codes, with a pilot launch slated for Indonesia by year’s end.
Speaking at the annual meeting of the Asian Development Bank in Milan, KFTC President Park Jong-seok said the new system is designed to facilitate mobile-based transactions across borders, allowing consumers to make payments or withdraw local currency abroad using their smartphones.
The platform, described as an open hub, will serve as a conduit connecting foreign payment institutions, Korean financial companies, and fintech providers. It is expected to support services such as QR code payments at overseas merchants and cardless ATM withdrawals — all without the need for physical credit or debit cards.
The system will enable both outbound payments by Korean travelers and inbound transactions by foreign visitors to Korea.
“We aim to provide financial companies and fintechs with infrastructure that reduces costs and simplifies service delivery,” Park said.
The hub will bypass traditional international card networks, which often charge fees of around 1 percent per transaction. By routing payments through its own infrastructure, KFTC expects to significantly lower transaction costs.
Indonesia is the first market targeted for rollout, followed by other members of the Asian Payment Network, a 12-nation consortium that includes Malaysia, Singapore, Vietnam, Japan, and the Philippines. Expansion into additional member countries is expected in subsequent phases.
Park emphasized the system’s open-access model, noting that licensed payment providers — regardless of size — will be able to join.
“This will help level the playing field and foster competition in cross-border financial services,” he said. “We believe it will strengthen both Korea’s global competitiveness and the fintech ecosystem.”
reporter
Candice Kim
candicekim1121@ajupress.com
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