APD | South Korea: 300 bln-won fund to be set up for fintech firms

By APD writer Alice

South Korea will set up a 300 billion won (US$252 million) fund to pour more cash into fintech firms, said Financial Services Commission (FSC) Chairman Eun Sung-soo.

Eun revealed the information at a September 18 meeting with executives from fintech firms, as South Korea pushes to become a global test bed for fintech firms.

The establishment of the fund will play a catalytic role in investment for the fintech sector, he said, adding that it will also encourage banks and other financial institutions to make more loans to fintech firms.

By next March, the FSC will designate 100 financial products, which are tested under light-touch regulations, he said.

For years, South Korea has stepped up efforts to ease regulations and cut red tape to boost the fintech industry.

Since last year, fintech firms have been able to develop services without regulatory hurdles.

Under a so-called regulatory sandbox, fintech firms using new technologies, such as blockchain and big data, are exempted from tight regulations.

(ASIA PACIFIC NEWS)