Singapore to help South Korean fintech companies gain a head start in the country
Singapore has opened its doors to South Korean fintech companies looking to expand their presence beyond local borders. Singapore’s Fintech Association (SFA), in partnership with the Banks Foundation for Young Entrepreneurs, has joined forces to create 80RR, a co-working space for Korean companies in Singapore.
Reuben Lim, CEO of SFA, told reporters that the partnership would be mutually beneficial given the similar growth trajectories in both countries. He noted that the countries are “hungry for expansion” and creating a launch pad would bring them closer to achieving their expansionist ideas.
A bilateral agreement exists between Singapore and South Korea, which will make the process of creating a springboard for fintech companies easier.
“The Digital Economy Agreement (DEA), which is like the Digital Assets Free Trade Agreement, signed between Korea and Singapore, opens up active digital exchange between the countries. Singapore has positioned itself as the regional headquarters for all business transactions in Southeast Asia,” Lim said.
The collaboration area is one step of many for SFA as part of the plan to promote growth between new companies in the space. The reasoning is that for smaller companies, a physical workplace will allow them to “meet and network”, which will improve their credibility with customers and investors.
“Unlike big companies like Korean Air, Samsung or SK, people don’t know the names of these companies and they have to make themselves known to the rest of the world. Having a physical space facilitates this so-called publicity,” Lim added.
Singapore’s regulations put it ahead of the pack
Both firms in digital assets or traditional fintech sectors are drawn to Singapore because of its regulatory framework. Analysts have hailed the framework as one of the most advanced in Southeast Asia, which is responsible for the increase in fintech activity in the country.
A good example of the progress made is clearly seen in the PayNow service which allows individual users to tap into up to 10 banks and four non-bank institutions from a mobile application managed by the Associations of Banks Singapore (ABS).
The regulatory system in Singapore has also built a reputation for being one of the most proactive in the world. The collapse of Terra, Celsius and Three Arrows Capital (3AC) prompted the country’s regulators to step in to prevent a repeat of this summer’s catastrophic events.
Most recently, Blockchain.com and Coinbase (NASDAQ: COIN) have received regulatory approval from the Monetary Authority of Singapore (MAS), signaling an intention to maintain their leading role in the region.
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