Regulators in South Korea and Singapore announced on Monday that they have agreed to foster a positive environment for financial technology companies between the two countries. According to a statement released by South Korea’s Financial Services Commission (FSC), the agreement between itself and the Monetary Authority of Singapore (MAS) was reached last week.
The agreement will allow fintech companies from South Korea to penetrate Singapore’s market. This will be achieved by the MAS providing guidance and support on the accreditation and regulatory matters to the companies. In turn, the FSC will also provide support for Singapore fintech companies looking to expand or enter the market in South Korea.
In a joint statement between the two regulators, it said South Korea and Singapore: “will also provide greater support to fintech companies in Singapore and Korea to help them better understand the regulations in each jurisdiction. This will reduce the time needed for companies to expand to the other market.”
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The agreement follows the president of South Korea, Moon Jae-in visiting Singapore last week. The main reason for the trip was to enhance cooperation between the two countries. It was the first visit by a South Korean president since 2003.
Commenting on the trip, the MFA said at the time: “President Moon and Prime Minister Lee will witness the exchange of several Memoranda of Understanding to enhance our cooperation in the areas of trade, environment and small and medium-sized enterprises and start-ups.”
Enhancing the fintech market
Singapore has shown a commitment to enhancing its fintech industry and facilitating a positive environment for local companies overseas. Last year, Finance Magnates reported that the MAS and the Securities Commission Malaysia (SC) entered into an agreement to promote innovation in financial services in their respective markets. Furthermore, in June this year, it was also announced that the MAS had entered into an agreement with the Indian Department of Economic Affairs (DEA) to strengthen cooperation surrounding fintech.
These agreements are similar to the one between South Korea and Singapore as they aim to foster the expansion of the fintech industry in each other’s markets. The Singapore watchdog has also instigated cooperations with other international authorities such as the United Kingdom, China, and Australia.