'Growing Fintech with 1 Trillion Innovation Fund + 200 Billion Annual Investment'

Matched Fintech Specialized Support Group with Dedicated Managers for Assistance
Digital Asset Regulatory Framework Also Revised with Focus on Investor Protection

[Asia Economy Reporter Sim Nayoung] The Financial Services Commission (FSC) plans to expand the fintech innovation fund to 1 trillion won and promote the supply of more than 200 billion won annually in policy funds to foster the fintech industry. On the 30th, the FSC announced these details in its 2023 major business promotion plan during the presidential work report held at the Blue House State Guesthouse in Jongno-gu, Seoul.

The FSC will provide comprehensive consulting from experts including legal, accounting, and technical fields to fintech companies and support D-Testbed participating companies to use a professional data analysis system on a regular basis. The scope of data provided will also be expanded to non-financial sectors.

The D-Testbed is a project that provides financial sector data and testing environments so that fintech startups and prospective entrepreneurs can verify and develop the business feasibility and viability of their technology and ideas before launching specific businesses. To help small and medium fintech companies lacking professional and support personnel effectively utilize the sandbox system, the FSC will match them with professional support teams and dedicated managers.

Various opportunities for fintech companies to present investment pitches, such as demo days, will be provided, and the system will be improved to activate fintech investments by financial companies.

The regulatory framework for newly emerging digital assets will also be reorganized. A phased regulatory system for virtual assets will be established to protect virtual asset users. Essential investor protection measures such as customer asset protection and unfair trade regulations will be legislated first, with additional supplements made as international standards become clearer.

Additionally, big tech and financial security regulations will be revised, and support will be provided for domestic financial companies’ overseas expansion and foreign financial companies’ entry into the domestic market. An FSC official stated, "We are preparing bold financial regulatory relaxation measures such as allowing financial companies to invest in subsidiaries in non-financial sectors or engage in ancillary businesses," adding, "We will also create a regulatory framework for big tech companies engaged in financial businesses that complies with international standards."

The goal is to eliminate regulatory blind spots considering the data and network characteristics of big tech, prevent risk transmission between financial and non-financial sectors within big tech groups, and manage risks in entrusted and partnership relationships between big tech and financial companies.

To support the overseas expansion of domestic financial companies, the FSC plans to activate exports of financial infrastructure such as credit information and payment systems to emerging countries and induce joint overseas expansion of financial companies linked to infrastructure exports. For example, from 2017 to 2019, the Korea Financial Telecommunications & Clearings Institute carried out a national payment system construction project in Cambodia, including three domestic banks among eight pilot banks.