[A new developmental direction in the regulatory system of ‘the separation of banking and commerce’]- focused on economic democracy issues - This report analyzes how ‘the separation of banking and commerce’ regulation has been built in Korea and how it has affected the development of Korean economy and financial system. It also suggests that the separation policy to liberate ‘banking and non-banking’s financial power from industrial capital， could solve the current pending issues as follows. First， economic vitality is being in decline， second， wealth polarization is getting more serious and it needs to find the momentum of the economy growth in Korea. In particular， it opines that it is important to restricting industrial conglomerates’ controlling power to financial institutions as an economic concentration level is relatively more severe in the industrial sector in Korea. Combining non-banking financial company with industrial conglomerates will bring an serious risk that company’s internal reserve money would not be circulated at the financial market and circulated exclusively and internally only inside the conglomerates group. This means a failure of the financial intermediary system in the nation. Therefore， financial intermediation service should be strengthened to overcome stagnant economy. To ensure this end， it is important to taking a new approach to innovate the current ‘separation of banking and commerce’ policy and design a novel separation regulation tailored just for non-banking sector， shadow banking， and financial conglomerates.