Shinhan expands startup center for financial innovation

Financial Services Commission Chairman Choi Jong-ku, left, and Shinhan Financial Group Chairman Cho Yong-byoung pose with framed copies of their handprints at the opening of Shinhan's expanded startup center in Jung-gu, Seoul, Thursday. Courtesy of Financial Services Commission

By Park Hyong-ki

Shinhan Financial Group has launched a new startup program inside the group's expanded Shinhan Future's Lab, a center for fintech entrepreneurs, the group said Thursday.

Shinhan Chairman Cho Yong-byoung said at the Lab's opening ceremony that the group will not only increase its investment in startups, but also the program will offer a "full ecosystem service."

Forty startups that have entered the program will be able to receive tips on how to commercialize their technologies, sell their companies and launch an initial public offering after achieving growth.

"Our scale-up program in Shinhan Future's Lab aims to boost the startup ecosystem and create unicorns," said Cho.

To this end, Shinhan will invest 25 billion won ($22 million) in the program over the next five years.

This is part of the holding group's bigger plan to set aside funds worth 2.1 trillion won to support 6,000 fintech startups, up from 1.7 trillion won the group previously pledged.

Established in 2015, Shinhan Future's Lab has so far fostered 112 startups that have received financial support worth 8.3 billion won from the country's largest financial group by profits.

About 650 startups applied for the Lab's new program, and Shinhan selected 40 that will soon experiment and develop their business ideas using technologies such as blockchain, artificial intelligence and big data analysis.

The Lab is considered Shinhan's in-house "sandbox" where startups can freely maximize their creativity, play with their ideas and test them for commercialization as quickly as possible.

The Financial Services Commission (FSC) said it hoped a lot more new companies can emerge from various venture programs run by financial groups and policy banks, and lead in financial innovation.

"We will fully back innovation led by startups, as well as push forward with regulatory reform so that they can further rapidly thrive," FSC Chairman Choi Jong-ku said at the opening event in Seoul.

Shinhan Future's Lab will also host a job fair for the 40 startups in June so that they can acquire professionals, the group said.

Shinhan Bank said it will seek to acquire fintech startups that are developing prime technologies and services inside Shinhan Future's Lab here or in Vietnam.

The bank will also seek to acquire tech companies that are not operating inside the Future's Lab as it is expanding its alliance through strategic ties with nonfinancial and financial partners both at home and abroad.

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