The "South Korea Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The embedded finance industry in the country is expected to grow by 21.0% annually to reach US$1.03 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 35.2% from 2024 to 2029. The country's embedded finance revenues will increase from US$1.03 billion in 2024 to reach US$4.68 billion by 2029.
This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.
The embedded finance sector in South Korea has not just grown, but experienced a significant surge over the past few months. This growth is driven by the integration of financial services into various digital platforms and the increasing demand for seamless customer experiences. Key sub-segments, including embedded payments and lending, are gaining traction as both businesses and consumers seek more efficient and user-friendly financial solutions.
Embedded finance sector in South Korea is undergoing a rapid transformation, marked by substantial growth over the past few months. Driven by increasing integration of financial services into digital platforms and a rising demand for seamless user experiences, key areas such as embedded payments and lending have seen significant traction. Looking ahead, this upward trajectory is expected to continue, bolstered by technological advancements and supportive government initiatives.
Recent product launches by major players like Naver, KakaoBank, and Toss highlight the sector's focus on user convenience and innovation. Additionally, strategic partnerships and collaborations have played a crucial role in expanding the reach and capabilities of embedded finance solutions, enhancing customer access to integrated financial services.
This momentum is not just expected to continue over the next few months, but is anticipated to accelerate. This acceleration is fueled by ongoing technological advancements and government support for digital finance initiatives. As the market matures, further innovations and partnerships are eagerly anticipated, enhancing the accessibility and functionality of embedded finance across the region.
Product Launches and Innovations
Naver Pay's Expanded Services
Naver, a leading tech company, expanded its Naver Pay platform to offer a wider range of integrated financial services, including payments, loans, and insurance. This expansion allows users to access comprehensive financial solutions directly within the Naver ecosystem, improving convenience and user experience.
KakaoBank's New Features
KakaoBank introduced new features that facilitate embedded lending and investment options. These options enable users to seamlessly apply for loans and invest in financial products without leaving the app.
Toss's Insurance Services
Toss, a prominent fintech in South Korea, launched embedded insurance products that allow users to purchase insurance policies directly through its app, streamlining the process and making it more accessible. These launches reflect the growing trend of integrating financial services into everyday digital platforms, addressing consumer demand for convenience and efficiency in managing financial transactions.
Strategic Partnerships
KakaoPay and Samsung Card Collaboration
In November 2023, KakaoPay teamed up with Samsung Card to integrate KakaoPay's digital wallet services with Samsung Card's credit facilities, providing users with a more seamless payment experience across platforms.
Naver and Toss Partnership
In January 2024, Naver announced a strategic partnership with Toss to embed financial services within its platforms. The partnership focuses on integrating payment and lending solutions directly into Naver's ecosystem, thus enhancing user access to financial products.
Shinhan Bank and Toss Integration
Shinhan Bank partnered with Toss to offer embedded banking services. These allow users to manage banking needs directly through the Toss app, streamlining transactions and improving customer engagement.
These collaborations highlight the growing synergy between digital platforms and financial services, enhancing user experiences and expanding access to embedded finance solutions in South Korea.
Key Mergers and Acquisitions
Naver's Acquisition of Poshmark
In September 2023, Naver acquired Poshmark, a US-based social commerce platform, for $1.2 billion. This acquisition aims to expand Naver's global reach while integrating its embedded finance solutions into Poshmark's platform, improving the user experience for the fashion-focused community.
While detailed information on other mergers and acquisitions is limited, the significant partnerships and product launches highlight the sector's robust growth and innovation.
Regulatory Changes
Open Banking Framework Expansion
The Financial Services Commission (FSC) has expanded its open banking framework, allowing third-party providers to access bank data. This move aims to boost innovation and competition, enabling fintech companies to offer more integrated and user-friendly financial products.
Regulatory Sandbox Initiatives
The FSC has extended its regulatory sandbox, enabling fintech firms to test new products and services in a controlled environment. This promotes innovation while ensuring regulatory compliance.
Consumer Protection Regulations
In response to the growing embedded finance market, the government has introduced consumer protection regulations focusing on transparency and accountability to ensure users are well-informed about the financial products they engage with. These regulatory measures reflect South Korea's commitment to developing a robust fintech ecosystem that fosters innovation while safeguarding consumer interests and ensuring market stability.
The market has also witnessed significant mergers and acquisitions, such as Naver's acquisition of Poshmark, which are set to further accelerate growth and global expansion. Meanwhile, regulatory developments, including the expansion of the open banking framework and the introduction of consumer protection measures, underscore the government's commitment to fostering a secure and dynamic fintech ecosystem.
As embedded finance continues to evolve in South Korea, the sector is well-positioned for sustained growth and innovation, setting the stage for a more integrated and user-centric financial landscape in the region.
Scope
South Korea Embedded Finance Market Size and Forecast
- Embedded Finance by Key Sectors
- Retail
- Logistics
- Telecommunications
- Manufacturing
- Consumer Health
- Others
- Embedded Finance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Finance by Distribution Model
- Own Platforms
- Third Party Platforms
South Korea Embedded Insurance Market Size and Forecast
- Embedded Insurance by Industry
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel & Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport & Logistics
- Embedded Insurance in Others
- Embedded Insurance by Consumer Segments
- B2B
- B2C
- Embedded Insurance by Type of Offering
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
Embedded Insurance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Insurance by Distribution Model
- Own Platforms
- Third Party Platforms
- Embedded Insurance by Distribution Channel
- Embedded Sales
- Bancassurance
- Broker's/IFA's
- Tied Agents
- Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
- Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
South Korea Embedded Lending Market Size and Forecast
- Embedded Lending by Consumer Segments
- Business Lending
- Retail Lending
- Embedded Lending by B2B Sectors
- Embedded Lending in Retail & Consumer Goods
- Embedded Lending in IT & Software Services
- Embedded Lending in Media, Entertainment & Leisure
- Embedded Lending in Manufacturing & Distribution
- Embedded Lending in Real Estate
- Embedded Lending in Other
- Embedded Lending by B2C Sectors
- Embedded Lending in Retail Shopping
- Embedded Lending in Home Improvement
- Embedded Lending in Leisure & Entertainment
- Embedded Lending in Healthcare and Wellness
- Embedded Lending in Other
- Embedded Lending by Type
- BNPL Lending
- POS Lending
- Personal Loans
- Embedded Lending by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Lending by Distribution Model
- Own Platforms
- Third Party Platforms
South Korea Embedded Payment Market Size and Forecast
- Embedded Payment by Consumer Segments
- B2B
- B2C
- Embedded Payment by End-Use Sector
- Embedded Payment in Retail & Consumer Goods
- Embedded Payment in Digital Products & Services
- Embedded Payment in Utility Bill Payment
- Embedded Payment in Travel & Hospitality
- Embedded Payment in Leisure & Entertainment
- Embedded Payment in Health & Wellness
- Embedded Payment in Office Supplies & Equipment
- Embedded Payment in Other
- Embedded Payment by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Payment by Distribution Model
- Own Platforms
- Third Party Platforms
South Korea Embedded Wealth Management Market Size and Forecast
South Korea Asset Based Finance Management Industry Market Size and Forecast
- Asset Based Finance by Type of Asset
- Hard Assets
- Soft Assets
- Asset Based Finance by End Users
- SME's
- Large Enterprises
Reasons to buy
- In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2020-2029).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
-
Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $1 Billion |
| Forecasted Market Value (USD) by 2029 | $4.7 Billion |
| Compound Annual Growth Rate | 35.2% |
| Regions Covered | South Korea
|
Key Topics Covered:
1. About this Report
1.1. Summary
1.2. Methodology
1.3. Embedded Finance Definitions
1.4. Disclaimer
2. South Korea Embedded Finance Industry Market Size and Forecast
2.1. South Korea Embedded Finance - Revenue Trend Analysis, 2020-2029
2.2. South Korea Embedded Finance Market Share Analysis by Key Sectors
3. South Korea Embedded Finance Industry Market Size and Forecast by End Use Industry
3.1. Market Share Analysis by Key Sector
3.2. Retail - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
3.3. Logistics - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
3.4. Telecommunications - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
3.5. Manufacturing - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
3.6. Consumer Health - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
3.7. Other Segments - Embedded Finance Industry Revenue Trend Analysis, 2020-2029
4. South Korea Embedded Finance Industry Market Size and Forecast by Business Model
4.1. Market Share Analysis by Business Model
4.2. Embedded Finance Industry Revenue Trend Analysis by Platform, 2020-2029
4.3. Embedded Finance Industry Revenue Trend Analysis by Enabler, 2020-2029
4.4. Embedded Finance Industry Revenue Trend Analysis by Regulatory Entity, 2020-2029
5. South Korea Embedded Finance Industry Market Size and Forecast by Distribution Model
5.1. Market Share Analysis by Distribution Model
5.2. Embedded Finance Industry Revenue Trend Analysis by Own Platforms, 2020-2029
5.3. Embedded Finance Industry Revenue Trend Analysis by Third Party Platforms, 2020-2029
6. South Korea Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7. South Korea Embedded Insurance Industry Market Size and Forecast by End Use Industry
7.1. Market Share Analysis by End Use Industry Segments
7.2. Consumer Products - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.3. Travel & Hospitality - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.4. Automotive - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.5. Healthcare - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.6. Real Estate - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.7. Transport & Logistics - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7.8. Other - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
8. South Korea Embedded Insurance Industry Market Size and Forecast by Consumer Segment
8.1. Market Share Analysis by Consumer Segment
8.2. B2B Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
8.3. B2C Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
9. South Korea Embedded Insurance Industry Market Size and Forecast by Type of Offering
9.1. Market Share Analysis by Type of Offering
9.2. Product Based Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
9.3. Service Based Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
10. South Korea Embedded Insurance Industry Market Size and Forecast by Business Model
10.1. Market Share Analysis by Business Model
10.2. Embedded Insurance Industry Revenue Trend Analysis by Platform, 2020-2029
10.3. Embedded Insurance Industry Revenue Trend Analysis by Enabler, 2020-2029
10.4. Embedded Insurance Industry Revenue Trend Analysis by Regulatory Entity, 2020-2029
11. South Korea Embedded Insurance Industry Market Size and Forecast by Distribution Model
11.1. Market Share Analysis by Distribution Model
11.2. Embedded Insurance Industry Revenue Trend Analysis by Own Platforms, 2020-2029
11.3. Embedded Insurance Industry Revenue Trend Analysis by Third Party Platforms, 2020-2029
12. South Korea Embedded Insurance Industry Market Size and Forecast by Distribution Channel
12.1. Market Share Analysis by Distribution Channel
12.2. Embedded Sales - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
12.3. Bancassurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
12.4. Brokers/IFA's - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
12.5. Tied Agents - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
13. South Korea Embedded Insurance Industry Market Size and Forecast by Type of Insurance
13.1. Market Share Analysis by Type of Insurance
13.2. Life Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
13.3. Non-Life Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14. South Korea Embedded Insurance Industry Market Size and Forecast by Non-Life Insurance
14.1. Market Share Analysis by Non-Life Insurance
14.2. Motor Vehicle Insurance - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14.3. Fire & Property Damage - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14.4. Accident & Health - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14.5. General Liability - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14.6. Marine, Aviation & Other Transport - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
14.7. Other - Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
15. South Korea Embedded Lending Industry Market Size and Forecast, 2020-2029
16. South Korea Embedded Lending Industry Market Size and Forecast by Consumer Segment
16.1. Market Share Analysis by Consumer Segment
16.2. Business Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
16.3. Consumer Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17. South Korea Embedded Lending Industry Market Size and Forecast by Business to Business (B2B) Sectors
17.1. Market Share Analysis by B2B Sectors
17.2. Retail & Consumer Goods Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17.3. IT & Software Services - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17.4. Transport & Logistics - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17.5. Manufacturing & Distribution - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17.6. Real Estate - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
17.7. Other - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18. South Korea Embedded Lending Industry Market Size and Forecast by Business to Consumer (B2C) Sectors
18.1. Market Share Analysis by B2C Sectors
18.2. Retail & Consumer Goods Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.3. Home Improvement - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.4. Leisure & Entertainment - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.5. Healthcare & Wellness - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.6. Education - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.7. Automotive - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.8. Financial Services - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
18.9. Other - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
19. South Korea Embedded Lending Industry Market Size and Forecast by Type of Lending
19.1. Market Share Analysis by Type of Lending
19.2. BNPL Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
19.3. POS Lending - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
19.4. Personal Loans - Embedded Lending Industry Revenue Trend Analysis, 2020-2029
20. South Korea Embedded Lending Industry Market Size and Forecast by Business Model
20.1. Market Share Analysis by Business Model
20.2. Embedded Lending Industry Revenue Trend Analysis by Platform, 2020-2029
20.3. Embedded Lending Industry Revenue Trend Analysis by Enabler, 2020-2029
20.4. Embedded Lending Industry Revenue Trend Analysis by Regulatory Entity, 2020-2029
21. South Korea Embedded Lending Industry Market Size and Forecast by Distribution Model
21.1. Market Share Analysis by Distribution Model
21.2. Embedded Lending Industry Revenue Trend Analysis by Own Platforms, 2020-2029
21.3. Embedded Lending Industry Revenue Trend Analysis by Third Party Platforms, 2020-2029
22. South Korea Embedded Payment Industry Market Size and Forecast, 2020-2029
23. South Korea Embedded Payment Industry Market Size and Forecast by End Use Segment
23.1. Market Share Analysis by End Use Segment
23.2. Retail & Consumer Goods Lending - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.3. Digital Products & Services - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.4. Utility Bill Payment - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.5. Travel & Hospitality - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.6. Leisure & Entertainment - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.7. Health & Wellness - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.8. Office Supplies & Equipment - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
23.9. Other - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
24. South Korea Embedded Payment Industry Market Size and Forecast by Consumer Segment
24.1. Market Share Analysis by Consumer Segment
24.2. B2B Payment - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
24.3. B2C Payment - Embedded Payment Industry Revenue Trend Analysis, 2020-2029
25. South Korea Embedded Payment Industry Market Size and Forecast by Business Model
25.1. Market Share Analysis by Business Model
25.2. Embedded Payment Industry Revenue Trend Analysis by Platform, 2020-2029
25.3. Embedded Payment Industry Revenue Trend Analysis by Enabler, 2020-2029
25.4. Embedded Payment Industry Revenue Trend Analysis by Regulatory Entity, 2020-2029
26. South Korea Embedded Payment Industry Market Size and Forecast by Distribution Model
26.1. Market Share Analysis by Distribution Model
26.2. Embedded Payment Industry Revenue Trend Analysis by Own Platforms, 2020-2029
26.3. Embedded Payment Industry Revenue Trend Analysis by Third Party Platforms, 2020-2029
27. South Korea Embedded Wealth Management Industry Market Size and Forecast, 2020-2029
28. South Korea Asset Based Finance Management Industry Market Size and Forecast, 2020-2029
29. South Korea Asset Based Finance Industry Market Size and Forecast by Type of Assets
29.1. Market Share Analysis by Type of Assets
29.2. Asset Based Finance Industry Revenue Trend Analysis by Soft Assets, 2020-2029
29.3. Asset Based Finance Industry Revenue Trend Analysis by Hard Assets, 2020-2029
30. South Korea Asset Based Finance Industry Market Size and Forecast by End User
30.1. Market Share Analysis by End User
30.2. Asset Based Finance Industry Revenue Trend Analysis by SME's, 2020-2029
30.3. Asset Based Finance Industry Revenue Trend Analysis by Large Enterprises, 2020-2029
31. Further Reading
31.1. About the Publisher
31.2. Related Research
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