South Korea doubles gov't fintech innovation fund to $781 million

The South Korean government will double the value of its Fintech Innovation Fund, a source of financial support for the financial technology or fintech industry, to 1 trillion won ($781 million).

The nation's market watchdog Financial Services Commission (FSC) on Sunday also said in a plan to stimulate the fintech industry that the supply of related loans and guarantees through policy financial institutions will also exceed 200 billion won per year.

First, the FSC said the size of the fund will jump from its original amount of 500 billion won under a four-year plan from 2020-23 to 1 trillion won for another four-year period from 2024-27.

From next year, policy financial institutions such as the Korea Development Bank, (KDB), Industrial Bank of Korea (IBK) and Korea Credit Guarantee Fund (KODIT) will expand their scale of loans and guarantees to fintech companies to over 200 billion won a year. Fourteen financial institutions will form an integrated support system under a consultative group on fintech support including the KDB, IBK, KODIT, Fintech Center Korea and Korea Growth Investment Corp.

Among the group's projects are joint preparation of a public database and fintech investment relations sessions every half year.

The FSC said more support will also go to the global expansion of fintech companies. For example, information on and arrangement of collaboration with companies abroad, starting with member states of the Association of Southeast Asian Nations, or ASEAN, will stimulate expansion of business areas to South Asia and New Northern countries in Eurasia.

In addition, the FSC announced plans to provide data on overseas venture capital, accelerators and global funds investing in Korea to link them with investments, adding that its fintech support budget next year is 14 billion won.

Write to In-Hyeok Lee at twopeople@hankyung.com