More Investment in 'Fintech' than Healthcare... 800 Billion Won Invested in the First Half of This Year

[Asia Economy Reporter Buaeri] The fintech sector attracted the most startup investment funds in the first half of this year. Investment amounting to 800 billion KRW was concentrated in the fintech fields such as finance and insurance.

According to an analysis by startup information company Startup Recipe on the 10th, as of the end of July, the company that attracted the most investment this year was Viva Republica, a fintech company operating Toss. Viva Republica announced on the 20th of last month that it had successfully raised 300 billion KRW in investment. 'Toss,' which started as a simple remittance service, is expanding its business to banking, securities, and insurance. In this investment round, Viva Republica was valued at 8.5 trillion KRW.

This trend was also reflected in other analyses. According to figures independently surveyed by Startup Alliance, about 7.00873 trillion KRW was invested in startups in the first half of this year, with the top investment sectors being finance & insurance, content & social, and distribution & logistics. Compared to the 2021 survey where investments were concentrated in 'healthcare' and 'content,' the trend is shifting toward fintech. This year, the finance & insurance sector received a total investment of 835.7 billion KRW, accounting for about 11% of the total. The content & social sector followed with 787.4 billion KRW, and distribution & logistics with 715 billion KRW. Startup Alliance explained that "interest in fintech and crypto (virtual currency) sectors has increased."

Within the fintech sector, the 'robo-advisor' field, which integrates artificial intelligence (AI) to assist asset management, is also emerging. Craft Technology successfully raised 175 billion KRW in investment this year. Craft Technology possesses AI technology that analyzes returns on large U.S. stocks, exchange rates, news, and more for investment purposes. Recently, it signed a business agreement with Hana Bank to create financial business models. Other companies providing AI-based investment solutions, such as 'Quarterback' and digital asset investment service 'UpRise' using robo-advisors, also raised 19 billion KRW and 10 billion KRW respectively this year.

'Fractional investment' fintech is also gaining attention. 'Musicow,' a platform where music copyrights can be purchased like stocks, attracted over 100 billion KRW in investment this year. Real estate revenue certificate platform 'LucentBlock' raised 17 billion KRW, and Yeolmae Company, which jointly purchases artworks, also attracted 17 billion KRW in investment, drawing industry attention.

Buy Now Pay Later (BNPL) models introduced by big tech companies like Naver and Coupang remain areas of interest. Although still in the early stages domestically compared to the global market, recently B2B BNPL services have also emerged. Fintech company Finovers Lab received 1.1 billion KRW in investment earlier this year. This company operates 'Payments,' a BNPL service targeting retailers sourcing products from online wholesale platforms. A financial sector official said, "As the Financial Services Commission plans to ease regulations on financial companies' equity investments in non-financial companies, investments in fintech are expected to increase further in the future."