The agreement will enable UK fintech firms and investors access the Asian market and expand to the South Korea, as well as attracting Korean FinTech companies and investors to the UK.
The UK’s Financial Conduct Authority (FCA) and the Korean Financial Services Commission (FSC) have also signed a regulatory co-operation agreement.
The co-operation agreement will allow the regulators to share information about financial services innovations in their respective markets, including emerging trends and regulatory issues.
UK Chancellor of the Exchequer Philip Hammond said: “The newly established FinTech bridge between the UK and the Republic of Korea is an important step for one of this country’s most exciting industries.
“The government is determined to help the UK FinTech sector to innovate and grow and to ensure that Britain remains the location of choice for FinTech start-ups.”
The bridge will check the barriers to foray in a new jurisdiction and further encourage innovation in both countries’ financial services sectors, by strengthening links between the regulators and governments.
The formation of a bridge is part of the UK government’s commitment to support the fintech sector as it witnesses fast growth.
In 2015, the UK fintech sector employed over 60,000 people and generated £6.6bn in revenue.
For South Korea, the bridge supports its efforts to create a fintech ecosystem that fully capitalises on Korea’s high tech and IT expertise.
FSC chairman Yim Jong-yong said: “Although Korea is a relative newcomer to FinTech, we have been focusing on developing a regulatory environment that supports rapid growth of the sector.
“The Fintech bridge with the UK, which is a pioneer of the industry, will enable Korea to more easily identify and adopt regulatory best practice. It is another step in strengthening the strong financial relationship between Korea and the UK."
Image: UK, South Korea establish fintech bridge. Photo courtesy of Gov.UK.
