Hidden champion- Korea (Fintech Asia forum 2015)

Private and Confidential | All Rights Reserved 2015

Richard Song, Director of Investment, Yozma Group Asia

Hidden Champion - KoreaFintech Asia Forum. 22/May/2015



#Fintech funding status: 2014


#Fintech funding status: May 2015

$18.2Billion funding


X6 times growthfrom 2014 to May 2015


Why Korea is hidden champion?


Korea’s FinTech industry is yet to be developed

374

57

15 10 7 4 0

UnitedStates

UnitedKingdom

Singapore China Hong Kong Japan Korea

Number of FinTech Companies by Nation

Source: Venture Scanner, 2014

No notable Korean FinTech companies


Korea’s FinTech industry is yet to be developed

*Indicator of Information and Communication Technologies (ICT) impact

Source: Global Information Technology Report

2014 NRI Index* Ranking 7 9 62 10

FinTech Investments $9.5B $.6B $.7B $NM


However, the Korean market is ready for FinTech



85%

78%

32%

40%

32%

Korea

Developed

Developing

World

Asia-Pacific

Source: ITU Statistics 2014

Internet Penetration



Smartphone Penetration

67%

66%

61%

53%

10%

Korea

China

UK

US

India

Source: Nielsen Mobile Consumer Report 2013



89%

67%

31%

28%

27%

Japan

Korea

Singapore

Hong Kong

Malaysia

Top 5 Asian Countries by Mobile-Commerce Participation

Source: Nielsen 2014

Korea

Mobile-Commerce

KRW 15tn

Korea

E-Commerce

KRW 40tn


1.13

2.82

4.1

4.8

0

1

2

3

4

5

6

2013

1Q

2013

2Q

2013

3Q

2013

4Q

2014

1Q

2014

2Q

2014

3Q

2014

4Q

2015

Est

2016

Est

KRW

Trillio

n

Domestic Mobile Payment Market

Source: Statistics Korea

Korean Infrastructure in Financial Technology


40 Mn Mobile Banking Subscribers

KRW690 Tn

Credit Card Spending

94%% of Bank Customers that Use e-Banking

Korean Infrastructure in Financial Technology


Korea FinTech Revenues est. in KRW

KRW

1.4 tn

KRW 2.7 tn

2015

Annual Growth 14%

2020


• Permit indirect identification system

Online Payments

• Legislation to be passed in the next month

Crowdfunding

• Simpler application process to conduct electronic finance business

Electronic Finance Business

Allow financial institutions to invest in FinTech companies

Allow industrial capital to flow into financial capital

Permit online insurance supermarket

Regulatory Improvements Regulations Under Debate

Regulatory changes


Yozma Seeks to Leverage Korean FinTech’s Potential

Experienced TeamStrong Global Network

Incubating SystemEffective Incentive Structure

Startups


AppendixOverview of Yozma Group Asia


1. Overview of Yozma Group Asia

YOZMA GROUP

Yozma Group

• Address(Israel): Ramat Aviv Tower 40 Einstein St. Tel Aviv 69 102 Israel

• Website : www.yozma.com

• A venture capital investment firm, established in 1993

Yozma Group Asia

• Address(Korea): 19F Two IFC, 10, Gukjegeumyung-ro, Youngdeungpo-gu,

Seoul, Republic of Korea, 150-945

• Website : www.yozma.asia

Background

As a fund of fund, Yozma Group attracted funds from both public and private (ratio of

6:4 respectively) amount of $265 million in total, where Israel government funded

$100 million; and international companies, $165 million. Yozma Group has

established 10 VC Funds in Israel and invested in promising Israeli IT start-ups,

which resulted in more than 20 companies either NASDAQ listed or sold out to major

international firms. After the success of Yozma funds, Israel became the second

ranked countries in terms of the number of NASDAQ listed companies.

Yozma became private in 1998 and raised two more funds of $130 M.

Highlights

• Yozma III funded early start-ups in Israel and recorded ROI of 4x more and IRR

of 26%.

• The best company record was 123% IRR

• Currently, 85% of Israeli inflows of investment funds comes from abroad

• Throughout the Yozma Ⅰ, Yozma Ⅱ, Yozma Ⅲ programs,Yozma Group has

invested in 50 companies directly and in 10 funds.

• Yozma I business model is regarded as one of the most successful government

led venture capital investment: injection of venture capitals -> company

incubating -> making global networks -> revenues

• Many consulting experiences on public-private cooperation model: BIRD, EEC,

EIF, RVC, Business Development Bank of Canada, New Zealand Government,

Greece Government etc.


Yozma Ecosystem

Core Capabilities


Questions?

Linkedin.com/in/[email protected]

http://linkedin.com/in/yangkisong


PresentsFintech Asia Forum 2015. Seoul


Speaker profile

• Regional Head of Asia Pacific, Facebook Platform Partnerships

• Vice President of BD & Investment. Managing Director of APAC,

Perfect World Entertainment

• Vice President of licensing business, Webzen

• Managing Director of Shanghai Branch, NHN

• Vice President, Head of of global business, HanbitSoft

Richard Song

Director of Investment

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