This could be an exciting time for Korean startups in financial technology, or fin-tech, the e-startup news and information site e27 said, adding that Korea “doesn’t want to be left behind” in the growingly lucrative sector.
The article said fin-tech in Korea is weighed down by laws that bar non-banking companies with assets exceeding US$1.8 billion from owning or investing in financial subsidiaries, with non-financial businesses limited to a stake of 4 percent in financial companies or banks. But Korea’s Financial Services Commission, the country’s top watchdog for the sector, is mulling reviewing interpretations of laws on financial holding companies, banking and finance to boost fin-tech, it added.
Global investment in fin-tech startups last year was, per data from certain industry sources, estimated to be worth US$12 billion.
Joe Seunghyun Cho, a managing partner at the global venture capital company Yozma Group, told e27 that “with the strong will of the (FSC) to support the fin-tech industry and overall boom in the startups and fin-tech companies, Korea is becoming an interesting place as a potential startup hub.”
By D.H.Peter Kim
