South Korea will set up a fund of 300 billion won ($252 million) to help channel more funds into fintech firms, the head of the financial regulator said Sept. 18.
Financial Services Commission Chairman Eun Sung-soo made the remarks at a meeting with executives from fintech firms, as Korea pushes to become a global test bed for fintech firms.
“The establishment of the fund will play a catalytic role in investment for the fintech sector,” Eun said.
The fund will also encourage banks and other financial institutions to ake more loans to fintech firms, Eun said.
By next March, the FSC will designate 100 financial products, which are tested under light-touch regulations, he said.
For years, Korea has stepped up efforts to ease regulations and cut red tape to boost the fintech industry.
Since last year, fintech firms have been able to develop services without regulatory hurdles.
Under a so-called regulatory sandbox, fintech firms using new technologies, such as blockchain and big data, are exempted from tight regulations.
By Ram Garikipati and newswires (email@example.com)