South Korea's financial regulator plans to introduce a regulatory sandbox for financial technology companies that would allow them to introduce new services without the need to comply with regulations, the Yonhap News Agency reported March 20.
A regulatory sandbox allows companies to test their products in a limited environment without following some or all regulations.
Under the plan, fintech companies will be exempted from regulations for two years if the Financial Services Commission deems their services to be innovative, according to officials from the regulator. The FSC can order fintech companies to stop the services if they hurt consumers' interests.
Fintech is a rapidly growing part of the financial industry in South Korea. Fintech apps saw the biggest growth in the nation's smartphone app market in 2017, according to data provided by Nielsen Korea.