Financial Services Commission Exec: South Korea's Startups Lack Needed Support
Thu, January 23, 2020

Financial Services Commission Exec: South Korea's Startups Lack Needed Support

South Korea's Financial Services Commission executive Kwon Dae-young observed that, in spite of the growing interest of financial technology startups in South Korea to expand overseas, there has not been enough support for them locally / Photo by: heecheol890102 via Pixabay

 

Kwon Dae-young is the director general of the financial innovation bureau of South Korea's Financial Services Commission (FSC). He spoke about his perspectives regarding the position of the East Asian country in today's financial technology realm.

Kwon observed that, in spite of the growing interest of financial technology startups in South Korea to expand overseas, there has not been enough support for them locally. These companies are facing challenges in attracting sufficient customers in South Korea, Kwon said.

Moreover, he cited that they may have been a demand for these financial technology companies' services in the Association of Southeast Asian Nations (ASEAN) market. Nevertheless, these startups have grumbled about their dearth in experience, network, information, and capability to study the market, Kwon explained.

Thus, the FSC made plans that include raising awareness of the startup industry through increasing the number of events related to financial technology. On December 16, the Korea-ASEAN FinTech Conference will be held in Seoul.

It will feature talks about the result of financial technology alliance in the ASEAN region, and the techniques on how to bolster it. Next year, the yearly Korea FinTech Week event will also be conducted on May 28, 2020.

The FSC has reportedly decided to increase the number of participating firms from this year's 50 to 150. The FSC intends to further scale up South Korea's financial technology sector, as per the news posted online by The Korea Times, the oldest of three English-language newspapers published daily in South Korea. 

It, apparently, desires to develop the country's startups so that they transform into "unicorns," or privately held startup firms that are valued at more than $1 billion. To accomplish its goal, the FSC revealed another initiative.

It said that the government of South Korea will establish a help desk in Singapore early next year. The Korea Startup Desk will support the expansion of the local financial technology startups in Southeast Asia.

It will also assist the country's financial technology companies to comprehend industry trends, and build networks with local investors, financial companies, accelerators, and other startup organizations.