Luxury purchase through mobile simple payment will become possible in Korea from next year under new fintech-related deregulations, Seoul authorities announced Wednesday.

Under new measures under study by the Financial Services Commission (FSC), the cap on purchase limit of 2 million won ($1,673) in digital wallet will be raised to allow Koreans to book plane tickets and even buy home appliances through mobile pay. The new ceiling will be announced later.

Later payment like credit card also will be added to digital pay system.

The measures were announced by the FSC as part of a strategy to boost the country’s financial technology, or fintech, industry.

Under measures, the FSC will introduce a plan that allows consumer funds or funds prepaid by consumers for simple payment service held by electronic financial business operators to be kept by outside hoards for more safe management. FSC data showed that outstanding balance of consumer funds reached 1.5 trillion won as of end of June, this year.

The FSC said the new measures will be implemented as early as July, next year.

As part of efforts to boost overall fintech environment, the FSC said it will create an investment fund worth 300 billion won dedicated to fintech companies and introduce a fast-track evaluation system for companies designated as providing innovative financial service when seeking listing on the secondary stock market.

It will also introduce a new My Payment industry, in which operators carry out payment order to financial institutions without holding consumer funds. It will allow a fintech company to provide payment service through open banking system.

The 300 billion won investment fund for fintech companies, meanwhile, will be created over 4 years through financial and private sector investment. The fund, which is expected to be expanded to 500 billion won over 6 years if necessary, will be used to invest in promising fintech companies in the early stage and for scale up and overseas expansion.

The FSC will also improve overall system and policy to allow more fintech companies to go overseas. The government plans to set up more than five fintech labs in the Association of Southeast Asian Nations by next year to allow more market entries by financial institutions and fintech startups.

It will also increase the number of innovative financial services from current 68 to 100 by March, next year, the FSC said.

By Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]