Value context and insight. lkm@koreatimes.co.kr
KB, Shinhan foster fintech startups
KB Financial Group Chairman Yoon Jong-kyoo, left, Saeed Amidi PNP CEO, right, and heads of fintech startups pose for a photo at 2019 HUB Day on Yeouido in Seoul, Nov. 13. Courtesy of KB Financial Group
By Lee Kyung-min
By Lee Kyung-min
Korea's two leading financial groups are making hefty investments in budding fintechs to help them become unicorns ― privately held startup companies valued at over $1 billion (1.17 trillion won).
KB Financial Group held 2019 HUB Day where it announced it has invested 26.6 billion won in 23 startups as of October. The recipients were among 39 shortlisted firms that have a combined 108 ongoing joint business projects with the group.
Over 200 people from startups, investment consultancies and KB Financial Group gathered to share the fintechs' business models and further plans at the event held Nov. 13 on Yeouido in Seoul.
The event was jointly organized by Plug and Play Tech Center (PNP), an early-stage investor, accelerator and corporate innovation platform with global headquarters in Silicon Valley.
Those selected will be able to team up with global firms to go abroad and seek joint business opportunities with PNP-recommended entities.
They include EYL, a quantum random-number generator-based internet of things (IoT) verification service provider, Finda, an asset management platform service provider, and Mainline, an artificial intelligence-based automated insurance sales service provider.
The group organized for the three promising fintechs to attend “Friday Pitch,” an investor relations event where over 100 global venture capitalists gather in the U.S.
“We will continue to provide opportunities for competent startups. The business partners with great growth potential will bring synergy to the group,” a KB official said.
Shinhan Financial Group Chairman Cho Yong-byoung, second from right, and Shinhan Bank CEO Jin Ok-dong, right, listen to a fintech official explain about how their business model works at Shinhan Future's Lab demo day event in Seongsu-dong, Seoul, Nov. 14. Courtesy of Shinhan Financial Group
Shinhan Financial Group held a similar event in Seoul, Nov. 14, where over 2,000 investors, startup officials and jobseekers gathered.
The group announced it had invested 16.9 billion won in 122 firms as of Nov. 14.
The fintechs nurtured via Shinhan Future's Lab presented their business models with services encompassing overseas remittance, payments, healthcare, commerce and content creation.
Shinhan plans to expand the joint projects with fintechs offering AI-based big data analysis, blockchain, logistics, beauty and commerce.
The group plans to have them establish a business presence in Vietnam, Singapore, Indonesia and Japan.
Shinhan has invested 8.6 billion won in 16 non-fintech startups in 2019, helping five of them seek business in Vietnam and four in Indonesia.
“We will take the initiative in innovative financial services and expand business partnerships with domestic and global players. This will created an ecosystem whereby budding fintechs will become unicorn firms,” Shinhan Financial Group Chairman Cho Yong-byoung said.