The Financial Services Commission said on the 18th that it will seek support measures such as establishing new exclusive products to boost fintech startups‘ investment attraction.

On the 18th, the Financial Services Commission held an on-site meeting of fintech startups presided over by Financial Services Commission Kwon Dae-young at Park Hospital Hall in front of Mapo, Seoul. Representatives from eight related agencies, including the Financial Services Commission, the Financial Supervisory Service, the Korea Development Bank, the Korea Credit Guarantee Fund, and the FinTech Support Center, seven financial and investment companies, and 10 early and small fintech companies attended the meeting.

Kwon Dae-young, a standing member of the Financial Services Commission, checks the financial environment of the fintech industry and listens to suggestions with related institutions and financial and investment companies at the “Fintech Startup Field Meeting” held at Park Hospital Hall in Mapo, Seoul on the 18th. [Picture = Financial Services Commission]

The Financial Services Commission listened to suggestions in the financing sector, including investment and loans in the fintech industry, along with related institutions and financial and investment companies. Financial and investment companies said investment in the fintech sector has recently shrunk, asking for the government’s role as investment priming water and M&A funding to continue investment from a long-term perspective.

Fintech startups recently talked about the situation in which it has become difficult to raise funds, with investment reviews focusing on current values such as sales rather than the future value of companies due to the worsening economic and financial environment.

The Financial Services Commission checked the performance of the financial support system introduced to foster fintech startups and discussed future support directions. Policy financial institutions will consider ways to expand support for the fintech sector by establishing new products exclusively for the fintech sector in consideration of difficult market conditions.

Innovative companies such as FinTech are having difficulty raising funds due to rising benchmark interest rates and weak investor sentiment, Kwon said. “Considering the global economic and financial environment, these difficulties are likely to continue, so policy efforts are needed to look at and resolve them.”

He then said, “Based on industry recommendations, policy financial institutions and fintech support institutions will come up with support measures together.”