The UK is finalising a new FinTech Bridge with South Korea in the wake of the Brexit vote.
The FinTech Bridge is an agreement that will make it easier for UK and the Republic of Korea to invest in fintech. It will help UK fintech firms and investors access the Asian market and expand to the Republic of Korea, as well as attracting Korean fintech companies and investors to the UK.
The news was announced at the 3rd annual UK-Korea Financial Forum, which took place in the City of London’s Guildhall today.
Chancellor Philip Hammond said: “The newly established FinTech bridge between the UK and the Republic of Korea is an important step for one of this country’s most exciting industries. The government is determined to help the UK FinTech sector to innovate and grow and to ensure that Britain remains the location of choice for FinTech start-ups.”
The UK rallied to action after the Brexit vote to bolster the country's fintech links.
It was announced earlier this month that UKTI, the government's trade and investment body and the Treasury would look at extending fintech bridges - a concept that lets the Financial Conduct Authority work closely with regulators from other countries to allow startups working in both locations to set up more easily. The scheme has already kicked off with Singapore and Australia, with India a likely contender to be set up soon.
Andrew Bailey, Chief Executive of the FCA said: “The UK attracts innovators from around the world and as a result we need to continue our support in this fast moving sector.
These Co-operation Agreements are absolutely vital in fostering an environment of FinTech innovation on a global scale. We look forward to working closely with the FSC on our efforts to promote innovation in our respective markets.
The agreement will allow regulators to share information around financial services innovations in their respective markets, which will include emerging trends and regulatory issues.
The first ever bridge was established between Britain and Signapore to help firms and investors access the Asian market and expand into Singapore.
Yim Jong-yong, chair of the Korean Financial Services Commission, said: "Although Korea is a relative newcomer to fintech, we have been focusing on developing a regulatory environment that supports rapid growth of the sector.
"The Fintech Bridge with the UK, which is a pioneer of the industry, will enable Korea to more easily identify and adopt regulatory best practice. It is another step in strengthening the strong financial relationship between Korea and the UK."