Korea and Indonesia to deepen financial cooperation in fintech, digitalization

Financial Services Commission (FSC) Vice Chairman Kim So-young delivers a congratulatory speech at the Indonesia-Korea Financial Cooperation Forum at Four Seasons Hotel in Jakarta, Indonesia, Monday. Courtesy of FSC

By Anna J. Park

Financial Services Commission (FSC) Vice Chairman Kim So-young vowed to actively support mutually beneficial business activities by private financial companies in Korea and Indonesia to deepen bilateral cooperation.

As of Monday, the FSC vice chief has been on a week-long visit to Southeast Asian countries, including Indonesia and Vietnam. Kim spent the first two days in Indonesia, followed by the next two days ― until Thursday ― in Vietnam. On the last leg of his visit, later this week, he is slated to visit Hong Kong.

During his two-day visit to Indonesia, Kim attended the Indonesia-Korea Financial Cooperation Forum at the Four Seasons Hotel in Jakarta. The event was jointly hosted by the FSC, the Council on International Financial Cooperation (CIFC) and the Financial Services Authority (OJK) of Indonesia.

Financial Services Commission (FSC) Vice Chairman Kim So-young, left, poses with Financial Services Authority (OJK) of Indonesia chief Mahendra Siregar, center, and Council on International Financial Cooperation (CIFC) Chairman Park Jong-kyu at Four Seasons Hotel in Jakarta, Indonesia, Monday. Courtesy of FSC

The forum was held under the theme of “Forging the future of finance: strengthening collaboration and sustainable finance in Korea and Indonesia,” and the FSC vice chairman stressed that bilateral financial cooperation between Korea and Indonesia is expected to bring innovation in the fintech sector of the Southeast Asian country by sharing Korean companies' experiences in accelerated digitalization.

“The FSC is committed to strengthening bilateral cooperation in the fintech industry by financial firms in Korea and Indonesia, aiming to ensure a synergy effect in financial innovation in both countries,” Kim said during the forum.

With an internet penetration rate of 78 percent and a smartphone distribution rate of 68 percent as of 2022, Indonesia's fintech industry has displayed rapid growth, coupled with the government's strong interest in introducing a digital economy. In response to the growing demand for the digitalization of the Indonesian financial market, Korean financial authorities plan to actively support Korean financial institutions' advancements in the Southeast Asian country in the areas of consulting, financial infrastructure development and more.

As of March this year, a total of 27 Korean financial companies operate 32 branches in Indonesia. Notably, the Indonesian subsidiary of Mirae Asset Securities has maintained the top spot in terms of market share in stock trading during the past three years, showcasing Korean financial firms' excellent performance and contributions to the economy.