Fintech Asia Forum 2015 was co-hosted by Yozma, Marvelstone & Life.SREDA held 22/May 2015. News articles: http://www.venturesquare.net/tag/fintech http://platum.kr/archives/38877

1. Private and Confidential | All Rights Reserved 2015
Richard Song, Director of Investment, Yozma Group Asia
Hidden Champion - Korea
Fintech Asia Forum. 22/May/2015

2. Private and Confidential | All Rights Reserved 2015

3. Private and Confidential | All Rights Reserved 2015
#Fintech funding status: 2014

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#Fintech funding status: May 2015
$18.2Billion funding

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X6 times growth
from 2014 to May 2015

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Why Korea is hidden
champion?

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Korea’s FinTech industry is yet to be developed
374
57
15 10 7 4 0
United
States
United
Kingdom
Singapore China Hong Kong Japan Korea
Number of FinTech Companies by Nation
Source: Venture Scanner, 2014
No notable Korean FinTech companies

8. Private and Confidential | All Rights Reserved 2015
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

9. Private and Confidential | All Rights Reserved 2015
However, the Korean market is
ready for FinTech

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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

11. Private and Confidential | All Rights Reserved 2015
However, the Korean market is ready for FinTech
Smartphone Penetration
67%
66%
61%
53%
10%
Korea
China
UK
US
India
Source: Nielsen Mobile Consumer Report 2013

12. Private and Confidential | All Rights Reserved 2015
However, the Korean market is ready for FinTech
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

13. Private and Confidential | All Rights Reserved 2015
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
KRWTrillion
Domestic Mobile Payment Market
Source: Statistics Korea
Korean Infrastructure in Financial Technology

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40 Mn Mobile Banking Subscribers
KRW
690 Tn
Credit Card Spending
94%
% of Bank Customers that Use e-Banking
Korean Infrastructure in Financial Technology

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Korea FinTech Revenues est. in KRW
KRW
1.4 tn
KRW 2.7 tn
2015
Annual Growth 14%
2020

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• 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

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Yozma Seeks to Leverage Korean FinTech’s Potential
Experienced TeamStrong Global Network
Incubating SystemEffective Incentive Structure
Startups

18. Private and Confidential | All Rights Reserved 2015
Appendix
Overview of Yozma Group Asia

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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.

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Yozma Ecosystem
Core Capabilities

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Questions?
Linkedin.com/in/YangkiSong
Richard.Song@yozma.asia

22. Private and Confidential | All Rights Reserved 2015
Presents
Fintech Asia Forum 2015. Seoul

23. Private and Confidential | All Rights Reserved 2015
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