Fintech in South Korea - statistics & facts

Mobile payments

The fintech market was dominated by the mobile payments sector at an early stage. As a country with one of the largest e-commerce market in the world, an easier way of payment to satisfy e-commerce users was needed. As a result, fintech companies offering mobile payment services began to appear after the abolition of compulsory public key certificate use for online payments in 2015. The major mobile payment providers are Kakao Pay, Naver Pay, and Samsung Pay. Major retailers such as Shinsegae and 11Street have also developed their own payment services.

Digital banking and alternative financing

Fintech services are gradually evolving. While mobile banking is on the rise, alternative financing, including crowdfunding and peer-to-peer lending, has attracted investors across all generations. The amount of assets managed mainly through robo-advisor services is also increasing year by year. Recently, Korean fintech companies and financial institutions have started pursuing the possibilities of a collaborative system. The insurance industry started investing to foster startups in the insurtech sector to expand into the fintech business.

Leading fintech companies

The major fintech companies in South Korea are Naver, Kakao, and Toss. According to a survey conducted in South Korea in 2020, Naver Pay was the most widely used mobile payment service in South Korea, at 73.8 percent. Kakao Pay followed with around 68.8 percent. Toss, operated by Viva Republica, started with a digital money transfer service, and now offers a variety of financial products. Viva Republica is South Korea's first fintech unicorn company whose market value exceeded over one trillion South Korea won.

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