Seoul City - Shinhan Financial expands support for digital financial startups... including blockchain and artificial intelligence

Seoul City and Shinhan Financial Group Join Forces, Recruiting Companies for the “Finovation Challenge” This Year, Further Expanding Support for Startups in the Digital Finance Sector. Its goal is to shift from previous selections mainly focused on financial technology to broader fields such as artificial intelligence, blockchain, big data, and more, actively discovering tech companies that can be integrated with the financial industry.

On May 6, Seoul City announced that it will collaborate with four companies of Shinhan Financial Group—Shinhan Bank, Shinhan Card, Shinhan Investment Securities, and Shinhan Life Insurance—to recruit participants for the 5th “Finovation Challenge” from May 7 to June 4. The “Finovation Challenge” is a project launched in 2022 to help startups apply their technologies to real financial services and verify their commercialization potential. The name is a portmanteau of financial technology (Fintech) and open innovation, indicating a collaborative structure between financial companies and external innovative firms.

This year’s open call includes fields such as financial technology, artificial intelligence, blockchain, big data, digital marketing, insurtech, payments, and specialized services for Alpha, MZ, and senior demographics. Considering that the digital financial market is rapidly expanding from simple payment or remittance services to data-driven customized asset management, insurtech, and intergenerational specialized services, Seoul City has broadened the recruitment scope. This is especially seen as a focus on technologies like blockchain and artificial intelligence, which have high utility in improving work efficiency and developing new services within the financial industry.

In this challenge, Shinhan Financial Group’s four companies will select a total of six startups. The selected startups will engage in one-on-one collaboration with the business units of the financial companies to conduct PoC (proof of concept) processes. This step tests whether the startup’s technology can operate in real industry environments. Support services for upgrading commercialization and business development will also be provided, along with opportunities to participate in the Seoul Fintech Lab and Shinhan Future Lab incubation programs. Based on the results of joint commercialization, three outstanding companies will be ultimately selected, each receiving 10 million Korean won in commercialization support funds and a one-year residency at either Seoul Fintech Lab or Shinhan Future Lab. The award ceremony will be held during “Seoul Fintech Week 2026” in October.

Applications can be submitted via the Seoul Fintech Lab or Shinhan Future Lab websites. Lee Soo-yeon, Director of the Seoul Metropolitan Government’s Economy Office, stated that through cooperation with the financial sector, the city will actively support technological innovation and commercialization for startups. The approach of public agencies working together with large financial firms to support technology validation and market expansion is significant for lowering the market entry barriers faced by early-stage startups. This trend is likely to lead to more active development of technological experiments and business connections in the future digital finance industry.