With the news that the Inside Fin-Tech Conference will be coming to Seoul at the Korea International Exhibition Center (KINTEX). We here at SeoulSpace wanted to take a better look at the fast rising Fin-Tech industry in Korea which has the potential to be the next fin-tech hub. Korea has been known to have a great banking and finance infrastructure however Fin-Tech has been one of the most regulated industries not only in Korea but all over the world. This makes sense since, if a problem arises in the Fin-Tech sector, it will affect not only companies but also every citizen in that country.
Fin-Tech has not grown as fast as other industries because of these regulations set forth by the government. The same is the case in Korea, however recently Korea has started to embrace Fin-Tech, much like the way the United States has over the years. There is serious growth potential with Fin-Tech, whether it is improving existing financial services or creating new and innovative information communication technologies, Fin-Tech will be the next revolution and Seoul could be the perfect place to be the Fin-Tech Hub of not only Asia but the world. The reason is that the government has lifted tight restrictions on Fin-Tech. For example, now it is possible for non-financial firms to hold up to 50% stake in internet only banks which would hopefully lead to economic growth and job creation in Korea. Also, the Financial Services Commission (FSC) is looking to lift even more regulations in regards to Fin-Tech companies and Fin-Tech research and development.With the help of the Korean government, Korea will see more and more Fin-Tech Startups and internet-only banking technologies. But this is not just great news for Korean startups but also for big corporations to further develop new banking platforms. For example, Kakao has already been working on their “digital wallet” called Bank Wallet Kakao.
So why is Korea the perfect place for Fin-Tech to flourish? First is their great internet connection as well as users willingness to use the mobile phones/PCs to make payments. Korea also has a great infrastructure for centralized financial information management. There aren’t a lot of countries with a centralized policy. Only Korea, United States, Germany, United Kingdom, and Australia have the ability to get BIG DATA from transactions from their citizens. The wealth of information available will be vital in creating new and innovative Fin-Tech technologies. Being at the forefront for Fin-Tech is vital since the amount of investments in Fin-Tech globally will increase from $1 billion in 2008 to over $46 billion by 2020 according to German-based market research institution Satistica.
This increase in investments in Fin-Tech will create more high skilled jobs in Korea. As more and more new Korean Fin-Tech startups are founded and more funds given to Fin-Tech sectors in big companies, there will be a high demand for software engineers and programmers in Korea. With Korea going for a more creative economy thanks to their already highly developed infrastructure in regards to smartphones and technology usage, having a highly-educated workforce focused on technology will continue to build the Fin-Tech industry. This will then lead to global investors coming to Korea looking to invest.
A great place to see the latest Fin-Tech startups in Korea will be at the Inside Fin-Tech Conference which will focus mainly on financial technology trends and the future acceleration of innovation. There will be many speakers from financial institutions as well as up and coming promising Fin-Tech startups and innovations like Bitcoin and blockchain protocols. To see the full potential of Korean Fin-Tech startups in South Korea make sure to be at the conference this December 8th-9th.