South Korea’s FSC announces first batch of regulatory sandbox, focus on blockchain, e-payments

South Korea’s Financial Services Commission (FSC) has announced the first cohort of financial service providers accepted into its recently launched financial regulatory sandbox.

On April 1, the FSC launched the sandbox as the Special Act on Financial Innovation Support came into effect.

In its official announcement dated April 17, the regulator said that it had shortlisted 19 applications for priority review. Of these, nine firms have been allowed to test their innovative services and products in the regulatory sandbox.

Selected firms include KB Kookmin Bank, Shinhan Card, NH Property and Casualty Insurance, Rainist and others.

They will test products and services in areas such as e-payment services, p2p financial services, combining financial services with mobile communication services, blockchain technology, credit card payment service using QR codes, and others.

The blockchain project is focused on a stock lending platform to offer stock lending and borrowing services for individual investors using blockchain technology.

“For the remaining 10 applications, the FSC will soon decide whether to accept them into the regulatory sandbox at its meeting scheduled for May 2, 2019,” the FSC said.