Among the 18 fintech solutions selected, three utilize blockchain technology:
The FSC launched its fintech regulatory sandbox on April 1, 2019, enabling fintech companies and financial institutions to test their new services for a maximum of two years in an environment where certain regulations are exempted.
The 18 fintech solutions that made the cut were selected among more than 100 applications. Alongside the three blockchain solutions, other fintech products accepted into the financial regulatory sandbox’s first batch include:
In January, Choi JongKu, chairman of the FSC, outlined the regulator’s policy priorities for fintech innovation in 2019 at a meeting with fintech entrepreneurs, executives of financial institutions and investors. “The FSC will spare no effort to support fintech companies to come with globally competitive services and spread fintech innovation across the financial sector,” Choi said, adding that this year would be an opportune time for South Korea’s fintech industry to take a step forward.
Alongside the financial regulatory sandbox, other initiatives by the FSC to boost fintech in South Korea include regulatory reforms notably regarding fintech investment, as well as the introduction of an open banking system.
The government has made innovative technologies, including blockchain, one of its top priorities, announcing last year that it would allocate 1 trillion won (US$880 million) in 2019 to boost tech development as part of an overarching economic initiative.
Independently, Seoul launched a five-year plan last year to invest 123.3 billion won (US$108 million) to develop the South Korean capital as a smart city powered by blockchain. In a speech during his visit to Zurich in October 2018, Park Won-soon, the mayor of Seoul, unveiled the Blockchain Urban Plan for 2018-2022, which will cover 14 public services in five area including labor welfare, vehicle history management, certification issuance, donation management and elections voting.