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An Exploratory Study on Fintech Regulations and Start-ups: Focusing on the US, China, and Korea Cases  

Jeon, Seongmin (College of Business, Gachon University)
Pak, Do Hyun (College of Business, Gachon University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.15, no.1, 2020 , pp. 45-57 More about this Journal
Abstract
Among the fintech businesses that are actively developing around the world, payment and settlement are the most prominent. Korea has a well-developed IT industry and a good existing card payment environment, however, its innovative movement is overwhelmingly slower than that of other countries in the fintech. In this study, we try to assess the regulations on fintech and their impacts on the startup ecosystem by comparing the cases of U.S., China, and Korea. We have found that both the United States and China have lowered barriers to entry for the newly launched fintech industry, allowing startups and IT companies to start fintech businesses at the existing financial sector. Particularly the implementation of predictable regulations in U.S., and the failure to apply the financial regulations in China, help start-up companies' growth in the fintech industry. This finding provides us with a lesson that current positive regulations in Korea should gradually change into negative regulations, and predictable regulations that strictly enforce post-management except major items rather than pre-approval. The policy implications are discussed with the perspective of start-ups in fintech industry.
Keywords
Fintech; Payment industry; Actor-network theory; Negative-regulation; Positive-regulation;
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