| Financial Services Commission (FSC) Vice Chairman Kim So-young, right, listens to an employee of a fintech start-up during a meeting held to support fintech firms’ foray into foreign markets in central Seoul, Monday. With permission from FSC |
By Lee Yeon-woo
The Financial Services Commission (FSC) will spare no effort to support domestic fintech firms advancing to overseas markets, its deputy chairman said on Monday.
“For the Korean fintech economy to make a new leap, a new source of power is required. I believe tapping into the overseas market will be this new power,” FSC Vice Chairman Kim So-young said at the meeting hosted by the FSC . “Given the limitations of the domestic market, expansion abroad is not only an option for fintech firms to become unicorn firms, but necessary for survival.”
Among the 1,205 unicorn firms around the world, 252, or 21 percent, are fintech firms, while only one of Korea’s 15 unicorn firms is a fintech company, accounting for just 6 percent of the total.
Kim highlighted the competitive advantage of Korean fintech companies in the global market. “Technical skills of domestic fintech companies are competitive enough in the global market, as they have adjusted and grown in line with the characteristics of domestic consumers – quick and active to adopt new things,” he said.
“I hope Korean fintech firms can also make a foray into countries, starting in Southeast Asia, Central Asia and the Middle East.”
So far, domestic fintech firms have struggled to advance into overseas markets as they lack local information and find it difficult to identify regulatory differences in each country. According to Fintech Center Korea, only 12.7 percent of domestic fintech firms have tried to enter foreign markets.
Therefore, FSC will prepare professional support strategies, connect companies with foreign investors and offer the necessary information as well as consultations.
“FSC will support the enterprises step by step, starting from providing local information and securing a ‘base camp’ for advancement overseas,” Kim said. “The FSC will secure partnerships with local companies and institutions to localize fintech services, and use overseas fintech labs as local nurse rooms.”
Furthermore, the FSC will provide information on foreign venture capital or accelerators, and global funds holding mandatory investment rates in Korea, and help firms explore more investment opportunities.
Kim also encouraged the financial industry to participate. “The government will continuously work to support progress by strengthening cooperation with countries in Central Asia (such as Uzbekistan and Kyrgyzstan),” he said. “I hope financial institutions that run fintech labs (abroad) can actively participate as well.”
