The Financial Services Commission organized a gathering event for fintech businesses, financial companies, investment firms, policy financial institutions, and related industry associations on April 29 to facilitate collaboration and investment and open up new opportunities for fintech startups. At the beginning of the event, FSC Chairman Lee Eog-weon delivered opening remarks.
A Summary of Opening Remarks by FSC Chairman
Over the past ten years, fintech businesses have led innovation in Korea’s financial industry. However, the financial industry now stands once again at a critical juncture as the advancement of AI technology presents new challenges not only in terms of the speed of the change it brings but also in how it changes and restructures the way financial services work.
In this regard, AI transformation (AX) is not a choice but a reality that should be embraced actively in the financial sector, and fintech businesses should be at the forefront of the innovation and challenge to propel the financial industry’s move toward AI transformation (AX).
To facilitate this, the FSC plans to upgrade fintech support programs by first making the provision of support more effective and targeted (e.g. AI, data, regional enterprises, young entrepreneurs, etc.) Additionally, the FSC will seek bold reforms in regulations to establish a legal ground for stablecoins and seek regulatory improvements on the use of data to help to remove obstacles in developing new and innovative services.
Building “bridges” between individuals and between different ideas is a key to innovation. The FSC will continue to work to build “bridges” between financial companies, investors, and fintech businesses to promote investments in innovative fintech businesses.
Upgrading Fintech Support Programs
First, the provision of fintech support will be made more selective and targeted for regional startups and young entrepreneurs and in the areas of AI transformation (AX). To boost the effectiveness in the provision of support, there will be priorities given to strategic sectors and performance-based incentives offered in the selection process. Moreover, in line with the changes taking place in AX and the globalization of finance, there will be enhanced support programs for the use of AI technology and for the overseas expansion of domestic fintech services.
Second, there will be a more integrated governance network on fintech support programs made available throughout different regions to boost the efficiency in making use of the various resources and support programs that are currently scattered around different entities. For each region, a private-public joint committee will be organized made up of financial companies, local government authorities, and venture startups to seek more regionally-tailored fintech service models and come up with more tailored assistance programs.
Lastly, there will be an integrated fintech support information platform established to provide a one-stop channel for those seeking relevant information on fintech and startup support made available from the FSC, financial companies, policy financial institutions, and regional government organizations.
Further Plan
The FSC and related organizations will promptly work to draw up more concrete measures for upgrading fintech support programs and begin to first work on establishing a more integrated governance network on fintech support programs throughout different regions.
In the meantime, the FSC and related organizations will strengthen public relations efforts to make sure that fintech businesses are able to make effective use of the support programs.
* Please refer to the attached PDF for details.