"Expansion and Reorganization of Fintech Innovation Fund... Improvement of Financial Regulation Sandbox"
On-site Meeting Held to Strengthen Support for the Fintech Investment Ecosystem
Kim So-young, Vice Chairman of the Financial Services Commission, announced on the 9th that the Fintech Innovation Fund will be expanded and reorganized, and the financial regulatory sandbox system will be improved in relation to the fintech industry.
On the same day, Vice Chairman Kim held an on-site meeting titled "Strengthening Support for the Fintech Investment Ecosystem" at Korea Growth Finance in Yeouido, Seoul, stating, "As investment in the fintech industry has also contracted amid prolonged high interest rates and economic uncertainty, policy efforts are needed to revitalize the fintech company investment ecosystem."
According to financial authorities, the Fintech Innovation Fund raised 513.3 billion KRW over four years through the first fund (2020?2023) and supplied 282.4 billion KRW in investment funds to a total of 85 fintech startups.
Additionally, the second fund, which will be raised over four years starting this year, will be established at a scale of 500 billion KRW, expanding the total to 1 trillion KRW over eight years. Along with existing financial institutions, big tech companies (Naver Financial and Kakao Pay) also participated as co-fund investors in the second fund. The first investments from the second fund will be executed in 2025.
The second fund plans to systematize investment targets by subdividing them into ▲early stage ▲business model advancement stage ▲scale-up stage through overseas expansion. Vice Chairman Kim said, "We will support fintech companies that receive investments not only with simple funding but also by helping them create B2B collaboration models through open innovation with financial companies and big tech, and by linking follow-up investments."
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Furthermore, the authorities decided to promote improvements to the financial regulatory sandbox system. He stated, "We will enhance the review system of the financial regulatory sandbox so that companies applying can be promptly reviewed through the Innovative Finance Review Committee without prior consultation with the FSC, and we will improve the system so that the progress of the review can be easily checked online."
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