“Starting next year, we plan to focus on the expansion of early-stage fintech corporations into Singapore, Japan, and Canada.”
Chae Sung-min, head of the Second Seoul Fintech Lab, met with Chosun Biz on the 17th in Mapo-gu, Seoul, and noted, “The Second Seoul Fintech Lab must start to see results from next year,” while revealing plans for a full-scale global expansion.
The Second Seoul Fintech Lab, established by the Seoul Metropolitan Government in January last year, is a support organization for digital financial startups. In its second year, the Second Seoul Fintech Lab has supported 61 early-stage fintech corporations within three years of their founding. Core activities include expert mentoring, demo days, participation in overseas exhibitions, securing investments, marketing, and support for international expansion.
These corporations achieved an investment attraction of 9.5 billion won, created 133 jobs, and secured 89 intellectual properties. Sales also rose by 28% compared to the previous year.
While noting that the overall atmosphere in the investment market is likely to remain sluggish, Chae predicted new opportunities in the areas of virtual assets and blockchain. The following is a Q&A with Chae.
―I understand that you mainly support early-stage fintech corporations.
“One of the crucial factors for corporations is securing funding. Loans require repayment, and investments dilute equity, making government grants potentially the best option for early-stage corporations with less developed business models. We help match government grants that fit current businesses through a program called 'Funding Tech Tree', and we assist in actual fundraising.”
―Isn't regulation also a significant issue for fintech corporations?
“We also provide consulting on what is needed to apply for regulatory sandboxes that exempt or defer regulations for a certain period, and we support global expansion that can operate regardless of regulations.”
―Are there any examples of corporations going abroad due to regulations?
“There is a place called 'Uproot Company' that provides a systematic investment solution for virtual assets. They are using a Dollar Cost Averaging (DCA) method to systematically invest in specific assets over a period. While they initially planned a business model that earns commissions from original revenue, it has become impossible to implement this model domestically, and they can currently only charge subscription fees for providing their solution. To fully realize this business model, they recently expanded into Peru.”
―It seems that there are many similar items in the fintech sector. How do you select and nurture corporations?
“Not just investors, but also financial authorities and industry stakeholders participate in the startup selection process. While early-stage fintech corporations may appear awkward or poorly developed at first, they often experience rapid growth when collaborating with structured systems and securing funding. Experts evaluate their potential for such growth and inquire about the representative's approach to overcoming issues that similar prior corporations may have faced, including regulations.”
―You also continue to cooperate with various external partners.
“From last year to this year, it has been a period of refining our business direction, but starting next year, we must show results.”
Recently, we signed a memorandum of understanding (MOU) with DB Capital and are considering how to collaborate with portfolio companies in insurtech (insurance + technology). We are also preparing an MOU with Tencent, a leading fintech corporation in China. We are examining ways to coordinate our business with the Canadian embassy as a foothold for North American expansion. Starting in 2026, we expect our fintech corporations to be able to enter Canada in earnest.”
―What are your plans for global expansion?
“In Asia, we are keeping a close eye on Singapore and Japan. Both places are friendly to accepting Korean technology. We are preparing events to take our member corporations to Singapore next year. In Japan, we are reviewing open innovation with Creww, the largest private accelerator, in collaboration with the Seoul Business Agency (SBA).”
―We are in an investment chill. What are your outlooks for next year?
“The domestic stock market is not doing well. Investors are lowering the valuations of corporations that would qualify for an IPO at the pre-IPO stage. There are cases where investors close their wallets entirely because they anticipate losses if they invest based on past standards. When funds are locked at the top, money cannot circulate below. This atmosphere is likely to persist into next year. Even if someone does secure investment, it will likely be at a much lower valuation and with smaller amounts than before.”
―What about fintech specifically?
“Similarly, the outlook is not bright, but some businesses such as virtual assets and blockchain have the potential for activation. Many experts believe that the value of the dollar will rise due to the inauguration of a new government under Donald Trump and domestic political risks, leading to increased trading in virtual assets.”