"9.7 Trillion KRW Invested in 800 Fintechs Over 7 Years" FSC Holds Meeting with Financial Holding Company Fintech Lab Firms

Meeting between the Financial Services Commission and Fintech Companies from Financial Holding Fintech Labs on the 15th
"Please support us with the sandbox," fintech companies request support from financial authorities

[Asia Economy Reporter Sim Nayoung] On the 15th, the Financial Services Commission held a meeting chaired by Standing Commissioner Kwon Daeyoung with financial holding companies' fintech labs and affiliated fintech companies. They shared the current status of fintech lab operations and listened to the service preparation status and related system improvement suggestions from the affiliated fintech companies.

The financial holding companies (KB, Shinhan, NH Nonghyup, Woori, DGB) attending the meeting stated that they operate fintech labs separately, functioning as accelerators for early-stage startups.

They provide startups not only with office space but also mentoring and startup investment funds. Through collaboration and partnerships between group affiliates and fintech companies, they develop financial products and introduce services. They also promote linkage between affiliated companies and other support programs such as business strategy and publicity consulting from the Korea Credit Guarantee Fund and D.CAMP.

They regularly hold demo days to support and connect companies with promotion and investment attraction. They supply funds needed by fintech companies through various forms of investment, including venture capital (VC) affiliated with the holding company and funds formed with participation from holding company affiliates. Additionally, they support local market entry by opening overseas offices in Vietnam and Singapore and provide necessary infrastructure such as offices and meeting spaces.

Since the initial launch of financial holding company fintech labs in 2015, support has been provided to over 800 startups and fintech companies. Moreover, investments exceeding approximately 970 billion KRW have been attracted.

Fintech companies affiliated with the fintech labs participating in the meeting announced that they are preparing services such as AI-based investment propensity analysis when subscribing to funds, platform services that allow easy development of robo-advisor models, and services that simplify the online electronic payment process for offline stores.

They mentioned that to provide these services smoothly, certain exceptions under relevant financial laws such as the Capital Markets Act and the Specialized Credit Finance Business Act may be necessary, and requested future support from financial authorities through sandboxes.

Kwon Daeyoung, Standing Commissioner of the Financial Services Commission, stated, "As digital innovation accelerates, it is expected that innovative financial services will advance through partnerships and convergence between the financial industry and other industries." He added, "We hope that financial holding companies will establish themselves as catalysts for financial innovation by expanding collaboration and linkage with fintech startups."

Furthermore, the financial authorities announced that when companies apply for regulatory exceptions through sandboxes, they will provide close support by designating dedicated managers and offering consulting. They also plan to make D-Testbeds permanent to provide opportunities for data utilization to verify the business feasibility of ideas.