Shinhan Financial Group has launched the second round of its fintech innovation hub, Shinhan Future's Lab, and decided to provide 25 billion won (US$21.92 million) of financial support to fintech firms and startups.
The group held a launching ceremony at Shinhan Life’s head office in Jung-gu, Seoul, on April 11. Since its inception in 2015, the fintech lab has invested 8.30 billion won (US$7.28 million) and nurtured 112 startups through its fintech and startup mutual growth program.
Shinhan Financial Group will offer a total scale-up package, ranging from infrastructure expansion, new digital technology consultation, financial solution provision, global expansion, investment banking support for mergers and acquisitions (M&As) and initial public offering (IPO). In particular, the group will hold a large-scale job fair to secure competent workers for startups in June.
Moreover, it will create a pool of 6,000 promising firms in order to seek out innovative companies that deserve investment. It has set aside 2.10 trillion won (US$1.84 billion) for investment in such firms for the next five years. The group will also expand the size of direct investment in fintech firms to 25 billion won (US$21.92 million) by 2023.
In addition to the announcement of the “scale-up” strategy, Shinhan Financial signed a memorandum of understanding with Korea Growth Investment Corp. (K-Growth). The group will share information about innovative firms and fintech startups with K-Growth and jointly establish a financial support system by stage of business growth.
Financial Services Commission Chairman Choi Jong-ku, who attended the ceremony, said, “Shinhan Future's Lab is an exemplary case among fintech innovation labs operated by domestic financial firms. Many fintech companies which received support from Shinhan Future's Lab are actively participating in a financial regulatory sandbox and the lab is helping fintech firms push into the global market through 'Future's Lab Vietnam' unit. The government will proactively operate the financial regulatory sandbox and reform regulations.”