Among the countries of its region,
the Republic of Korea is considered a leader in terms of state investments in innovative industries.
Recently, it became known that Seoul authorities will invest more than 1 billion dollars in fintech startups and blockchain until 2021.
The state is the main creditor and venture investor in Korea, as well as in Malaysia, Singapore, and some other countries, due to the policy of preventing the leakage of valuable technologies from the country. Usually, a new business is acquired by transnational corporations to get their ideas and practices. The Seoul government stated that soon it will support not just high-tech companies but also those that have problems with financing. The priority will be given to fintech and blockchain.
Korean officials got interested in fintech and blockchain primarily because the majority of large holdings in the state have banking divisions and are transnational. Money flows between a company’s offices around the world, and a significant part goes to payment systems as commission. Therefore, the government is looking for ways to reduce the cost of bank transfers, and the blockchain and fintech might be the solution.
Many American and European IT corporations are concerned about a large number of intermediaries who charge a significant percentage of a transferred amount for providing automated services. The Americans have even started an initiative to reform the banking system.
Korean high-tech companies have the same problem, and the country’s leadership is interested in developing fintech and introducing new solutions in the corporate sector.
In addition to direct investments in new business, Korea plans to create programs for the development of private and public-private venture capital funds to increase investments in new technologies in the country and stimulate the startup ecosystem as a whole.