BGF Retail Signs Fintech Business Partnership with Upin Tech Hub

Song Ji-taek, Head of Innovation Division at BGF Retail (left), and Lee Jae-pyo, CEO of Upin Tech Hub, are posing for a commemorative photo after signing a business partnership agreement for convenience store fintech operations on the 25th. (Photo by BGF Retail)

[Asia Economy Reporter Seungjin Lee] BGF Retail, the operator of CU, announced on the 26th that it has signed a business agreement with fintech specialist Upintech Hub to develop fintech and techfin businesses using online and offline channels.

Last month, the Ministry of Economy and Finance revised foreign exchange transaction regulations through a rapid confirmation and exemption system for new businesses in the foreign exchange sector, allowing ▲receipt of foreign exchange funds at convenience stores ▲receipt of remittance funds by foreign tourists through ATMs ▲provision of remittance services via unmanned foreign exchange machines, and use of remittance network sharing services.

In line with these changes, CU has partnered with Upintech Hub to carry out financial businesses related to the development and implementation of foreign exchange and overseas remittance services, discovery and expansion of new partnership projects, platform channel partnerships, technical consultations, and joint patent applications.

CU and Upintech Hub have completed final approval from the Ministry of Economy and Finance and the Financial Supervisory Commission and are now fully launching the development of foreign currency exchange services. Through this service, customers will be able to apply for currency exchange online and receive the exchanged funds anytime, 24 hours a day, at a nearby convenience store.

CU aims to introduce the foreign currency exchange service in the first half of next year and has been collaborating with Upintech Hub on system development and related matters since this month, with plans to jointly file patents for related business models in the future.

Additionally, CU plans to provide remittance fund payment services targeting foreign nationals entering Korea. This service allows foreigners to receive Korean won at a nearby CU convenience store through a cash dispenser after arriving in Korea for amounts they have pre-remitted online from their home countries.

By performing currency exchange services 24/7 at CU stores located nationwide?services traditionally handled mainly by banks?CU enhances convenience for domestic and international customers while attracting new customers and contributing to increased store sales.

As the closest platform in daily life, CU is actively adopting fintech technologies through partnerships with various financial and IT industries.

So far, CU has carried out differentiated fintech collaborations including ▲POS cash withdrawal services ▲non-bankbook remittance services ▲serving as a sales channel for financial products (such as pet insurance) ▲cryptocurrency payment services ▲distribution of convenience store big data through the financial data exchange ▲partnerships for digital transformation (DT) with card companies.

Song Jitaek, Head of Innovation Division at BGF Retail, said, “In this era of convergence, new services tailored to customers’ diverse financial lives are increasingly entering convenience stores alongside institutional developments. Especially with the recent expansion of nearby shopping, CU is further activating its integration with digital finance and expanding its platform business areas.”