Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Major financial groups strengthen cooperation with startups
By Anna J. Park
By Anna J. Park
In line with major financial groups' plans to invest tens of trillions of won over the next five years in the government-led Korean New Deal initiatives, the firms' close cooperation with startup businesses is becoming ever more prevalent.
The major financial groups each have their own programs for supporting burgeoning startups, yet such moves will now be an integral part of their business strategy in this full-on digital transformation period accelerated by the global pandemic.
Their cooperation with startups mostly occur in one of two ways ― applying innovative interfaces and platforms developed by fintech firms or jointly developing new services for customers.
Woori Financial Group's DINNO LAB
Under the banner of “DINNO LAB,” Woori Financial Group selected 15 startup companies earlier this year out of 187 contestants to support the their efforts for digital innovation. The financial group aims to not only support the venture firms, but also adopt bright innovative ideas from young entrepreneurs that will help with the financial group's management.
That's why Woori Financial Group launched an integrated center for the selected startups for the DINNO LAB projects in June, and five of the financial group's affiliates were each matched to some of the venture firms create a synergy effect in business operations.
Specifically, Woori Bank joined hands with one of DINNO LAB's fintech startups, Fin2B, in its overseas business in Vietnam starting this July. The system developed by the fintech firm is currently used by small and medium-sized companies when they raise money through trade accounts. The bank is also cooperating with real-estate fintech firm Asil, planning to launch contactless mortgage loans using the fintech platform.
Shinhan Financial Group's Future's Lab
Shinhan Financial Group has been operating Future's Lab as the group's startup accelerator program for the past five years. The financial group provides more systemic support for the startups that are largely from newly growing sectors like AI and big data, digital marketing or blockchain industries.
The financial group used to select dozens of startup companies once a year, yet starting this year, it has started to choose promising firms twice a year. During the first half of this year, 36 startups were selected for the Future's Lab project, while another 19 firms were additionally picked last month. Some of the selected firms' ideas and business models are adapted into Shinhan affiliates' services through cooperation deals.
Earlier this year, Shinhan Card launched a device for the iPhone, together with cooperation with Dansol Plus ― one of Shinhan Future's Lab startups ― which would allow iPhone users to make payments with a simple touch.
Shinhan Bank also co-developed a deposit trusteeship system with Honest Fund ― a former Shinhan Future's Lab startup selected in 2015.
“The Future's Lab program is not just about simple support for venture firms; Shinhan partners with some of these startups when their technologies or business models are directly linked with the group's strategies,” an official from Shinhan Financial Group explained.
KB Financial Group's KB Innovation HUB
Since KB Financial Group first launched its Innovation HUB back in 2015, the financial group has also been strengthening its ties with innovative startup businesses.
So far, the financial group has selected startups with the help of outside expert agencies, yet it received applications directly for the first time through the group's Innovation HUB website last month. The financial group also relocated its office space for Innovation HUB startups into a more spacious place located in Seoul's posh Gangnam area.
While over 90 startups were selected by the program, they have also jointly partnered with some of KB's actual businesses. One such case is FlyHigh ― a fintech firm specializing in mobile authentication. Most affiliates of KB Financial Group are cooperating with the venture firm's technology in receiving new customers for their financial products.
Hana Financial Group's 1Q Agile Lab
KEB Hana Bank is one of the first financial companies in Korea to have launched a startup support program, with its 1Q Agile Lab five years ago. The initiative is not only continuing to the present, but also has strengthened through various programs.
The bank recently launched the nation's first joint employee exchange training program with some of the startups from the lab. The bank's selected employees will spend six months at one of the fintech firms ― Minds Lab, Data Marketing Korea, Jaranda, and Finda ― which were all supported by Hana's 1Q Agile Lab in the past.
The financial group also partnered with Qraft Technologies and Minds Lab ― AI-based asset management firms ― to enhance the group's robo-adviser programs.