Chairman Kim Juhyun: "Expanding the Fintech Innovation Fund to 1 Trillion Won"

Fintech Innovation Fund to Support 1 Trillion KRW by 2027
KDB, IBK, and KODIT to Provide Over 200 Billion KRW Annually in Policy Funds

On the morning of the 7th, Kim Joo-hyun, Chairman of the Financial Services Commission, attended the Industrial Bank of Korea Next Round 'Fintech Special Round' event for revitalizing startup investment attraction at the Glad Hotel Bloom Hall in Yeouido, Seoul. He explained the government's policy direction on digital financial innovation and fintech activation and encouraged fintech startups seeking investment.

[Asia Economy Reporter Song Hwajeong] The government will expand the 'Fintech Innovation Fund,' which focuses on investing in fintech companies, from 500 billion KRW to a total of 1 trillion KRW, and strengthen a fintech-specialized financial support system by having policy financial institutions supply more than 200 billion KRW annually in policy funds.

On the 7th, Kim Joo-hyun, Chairman of the Financial Services Commission, announced this at the 'Fintech Special Round' event hosted by the Korea Development Bank's Next Round to revitalize startup investment attraction.

In his congratulatory speech, Chairman Kim said, "As economic uncertainty has recently increased, the startup and venture market is facing an investment winter," adding, "We will strengthen policy support so that fintech companies can overcome difficult times and expand their innovative capabilities to lead the future of the financial industry."

The Financial Services Commission plans to support the growth of innovative companies by introducing a 15 trillion KRW-scale Innovation Growth Fund and Silicon Valley Bank-style venture loans, while expanding the fintech innovation fund focusing on fintech companies from 500 billion KRW to 1 trillion KRW. It will provide 500 billion KRW by 2023 and raise an additional 500 billion KRW over the next four years to reach a total of 1 trillion KRW. Additionally, policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund will supply more than 200 billion KRW annually in policy funds (loans and guarantees).

Regulatory innovation responding to digital transformation will also be promoted. The government plans to actively collect field difficulties in new fintech areas such as online investment-linked finance (P2P) and pursue regulatory improvements. Furthermore, it will continuously promote the relaxation of regulations on cloud and network separation to enable the financial sector to actively adopt and utilize digital new technologies.

To help fintech startups commercialize innovative ideas, an expert support group will be formed to provide close support in areas such as legal, accounting, and management, and the operation of the financial regulatory sandbox system will be strengthened.

In addition, to enable various data to be used for financial service innovation, the scope of MyData information provision will be expanded from the current 492 items to 720 items by the first half of next year. Efforts will also be accelerated to promote big data utilization through artificial intelligence (AI) by establishing an AI data library and a financial AI testbed, among other initiatives to build diverse financial innovation infrastructure.

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