South Korea’s financial authorities will focus on nurturing fintech companies in artificial intelligence (AI) and youth entrepreneurship.
Financial Services Commission (FSC) Chairman Lee Eok-won said Wednesday that “AI technology advancement is fundamentally reshaping the way finance operates,” adding that “the financial AI transformation (AX) is a task that cannot be delayed, and fintech must be at its center.” He made the remarks at the “Fintech, A Place of Connection” event held at Front1 in Mapo-gu, Seoul, with KB and Shinhan Financial Group, Industrial Bank of Korea (IBK), and Lucas Meta.
The FSC plans to fully revamp its fintech support system. It has selected AX, regional development, and youth entrepreneurship as priority areas for focused nurturing, giving preferential treatment to companies in these fields across various support programs. Companies in these areas will receive additional points during the review process and be allocated a separate support budget. Extra incentives will also be provided to firms delivering outstanding performance.
Support for the expansion of AI technology will also be increased. The commission will back the development of cost-intensive infrastructure needed for AI services, such as graphics processing units (GPUs), and launch new programs to cultivate related talent. For companies expanding overseas, it will provide consulting on local regulatory compliance and help identify collaboration opportunities with local firms.
A new cooperation framework will be established to help the fintech industry build a virtuous ecosystem with investment institutions and local communities. The plan calls for forming a public-private council involving financial companies and local governments to develop fintech models tailored to key regional industries. The FSC also plans to create a single window consolidating support information scattered across the FSC, the Korea Development Bank, and IBK to provide integrated assistance.
Lee also pledged institutional improvements to remove barriers to innovation. “We have laid the groundwork for institutionalizing tokenized securities and will continue to push for the overhaul of stablecoin-related regulations,” he said. “We will also improve data utilization regulations in stages.”
