Sixteen fintechs and startups have attracted KRW 136.4 billion ($110.7 million) in venture capital after going through the financial regulatory sandbox of South Korea’s Financial Services Commission.
In operation since 2019, South Korea’s financial services regulator set up the regulatory sandbox to provide a fast-track pathway to approval for fintechs and startups by way of four years of exemption from licensing and other sales regulations.
So far, 16 fintechs and startups have raised KRW 136.4 billion ($110.7 million) in venture capital, while 38 have created 380 new jobs and seven are preparing for overseas expansion to 14 countries, including Thailand, Vietnam, Indonesia and Hong Kong.
In total, 102 ‘innovative financial services’ have been designated so far through 14 evaluation committee meetings for the regulatory sandbox. Of these, fintech dominated intake, making up 53% (54) of cases.
The figures were released ahead of 2020 Online Korea Fintech Week, which is beginning on 28 May.
The online event will feature special sessions, a virtual exhibition and an online job fair, all to highlight South Korea’s focus on fintech and encourage ‘open innovation’.