88 Innovation Finance Cases in Testing Phase... 273.2 Billion KRW Investment Results

Two Years of Financial Regulation Sandbox Implementation
Employment Increased by 1,237 and Investment Achieved 273.2 Billion Won

[Asia Economy Reporter Park Sun-mi] The implementation of the financial regulatory sandbox to promote innovation in the financial industry has resulted in the creation of 1,237 jobs and investment achievements of approximately 273.2 billion KRW.

On the 18th, the Financial Services Commission and the Financial Supervisory Service announced that since the operation of the financial regulatory sandbox system began in April 2019, currently 88 innovative financial services are being tested in the market, and a total of 132 services are expected to be launched by the end of the year.

▲Fractional investment in overseas stocks ▲Credit card remittance services ▲Real-name verification services using facial recognition technology are representative examples of innovative financial services. When designated as innovative financial services through the financial regulatory sandbox system, businesses can receive a maximum of four years of exemption or deferral from regulations such as licensing and business conduct, gaining the opportunity to quickly test and commercialize innovative ideas and technologies. With the enactment of the amended 'Special Act on Financial Innovation Support' last month, the special period can now be extended by up to an additional 1 year and 6 months.

The launch of innovative financial services through the financial regulatory sandbox system is creating new jobs and leading to the growth of the fintech industry through investment attraction.

As of March, the number of dedicated personnel at companies approved under the financial regulatory sandbox increased by 1,237. In September 2019, the first year of the sandbox system, the related dedicated personnel numbered only about 332, but this rapidly expanded to 544 in March 2020, 1,023 in September 2020, and 1,237 in March 2021. This is interpreted as the creation of jobs for young and talented professionals such as developers, designers, and marketers alongside the growth of fintech companies.

The scale of investment from venture capital and financial companies related to financial regulatory sandbox projects also increased to approximately 273.2 billion KRW, more than doubling compared to 126.4 billion KRW in September 2019.

The financial authorities are currently recruiting participants to test the feasibility of innovative fintech technologies and ideas through the D-Testbed from the 28th of last month until the 20th of this month, aiming to build an environment where early-stage fintech companies and startups can test the business potential and feasibility of their innovative ideas.

A Financial Services Commission official stated, "Services recognized for business viability through the financial regulatory sandbox are emerging and driving the development of new technologies in various fields," adding, "As we enter the third year of operation, we plan to continue efforts to solidify the system to ensure smooth innovation through the financial regulatory sandbox."

This content was produced with the assistance of AI translation services.