How EU regulation brought a Korean deeptech to Luxembourg

In the EU, data protection is not a footnote – it's the law. The GDPR, the EU’s law on data protection, sets strict rules for how organisations collect, use and store personal data. For some international companies looking to expand in the European market, this is a constraint. For others, like South Korean Desilo, it’s an opportunity.

The deeptech company specialises in privacy-preserving technology based on fully homomorphic encryption (FHE), a cryptographic method that allows data to be processed and analysed without ever being decrypted. “In practice, this means that no one, not even the solution provider, can access the underlying data,” says Myoungbee Sung, Desilo’s Business Development Head. The technology is relevant for sensitive fields such as healthcare – Desilo works with the Korean Cancer Centre and several hospitals – and finance.

When the company learnt that the EU is stepping up its fight against financial crime by allowing data exchange between financial institutions, it knew that it could make a real difference in Europe – and get a business breakthrough in the bargain.

When anti-money laundering regulation drives opportunities

The opportunity comes from the EU’s Anti-Money Laundering Regulation article 75 that will come into force in July 2027. It will make it possible for financial institutions to collaborate across borders and exchange information through dedicated information-sharing partnerships. With one major caveat: participants must balance data sharing with strict compliance with the GDPR. This is exactly what Desilo’s technology makes possible.  

“We enable banks and other financial institutions to detect fraud and money laundering patterns collaboratively, without any of them ever exposing their customers’ data,” explains Myoungbee. For her, the choice to expand to Europe was obvious. “The EU’s regulatory logic demands that we build our solutions there.”

Luxembourg is one of the few places where the entire financial chain sits within reach. For a company like ours, whose technology is all about cross-institutional collaboration, this density matters enormously.
Myoungbee Sung, Desilo

Desilo’s next decision was just as logical: explore Luxembourg as its European location. The Luxembourg ecosystem stood out for a very particular reason: its density. “It’s one of the few places where the entire financial chain sits within reach,” Myoungbee points out.

This includes the banks, the financial regulator, fintech hubs, research centres and even supercomputing infrastructure. In most countries, such organisations are scattered across different cities. In Luxembourg, they are all neighbours. That's rare. “For a company like ours, whose technology is all about cross-institutional collaboration, this density matters enormously.”

Support that changes the timeline

The dense ecosystem encouraged Desilo to start its Luxembourg journey. And it didn’t have to do it alone. Two organisations provided strategic support: Luxinnovation, the national innovation agency, and the Luxembourg Trade and Investment Office (LTIO) in Seoul. “Once we started working with them, things moved remarkably quickly,” says Myoungbee.

With Luxinnovation and LTIO Seoul as our guides, every one of our questions received answers within days, even during the summer vacation. This changed our timeline.
Myoungbee Sung, Desilo

LTIO Seoul invited the company to meet the Luxembourg ecosystem face to face by visiting the Luxembourg Venture Days, which brings together startups, scaleups and investors, and Nexus Luxembourg, an international tech event.

Luxinnovation helped open further doors. “Jenny Hällen Hedberg, David Foy and Régis Ciré at Luxinnovation became our anchor throughout the process, from the very first conversation to our establishment and integration into the ecosystem,” Myoungbee confirms. “Setting up a European entity is normally like a maze for a foreign company. But with Luxinnovation and LTIO Seoul as our guides, every one of our questions received answers within days, even during the summer vacation. This changed our timeline.”

Creating fintech partnerships, one conversation at a time

Step by step, Desilo built the base for its new European headquarters. It found its future offices at Luxembourg House of Financial Technologies (LHoFT), where it was welcomed into the country’s fintech community. LHoFT also provides a platform to interact with the market. To grow its network in the financial sector, the team connected with ABBL, the Luxembourg Bankers’ Association, whose members proved “remarkably willing to engage with a newcomer business on a complex topic”. To continue its R&D efforts and optimise its solutions for the European market, Desilo found a research partner in the Luxembourg Institute of Science and Technology (LIST). “What struck me was how each conversation generated the next introduction,” says Myoungbee. “This is very characteristic of Luxembourg, I believe.”

What struck me was how each conversation generated the next introduction. This is very characteristic of Luxembourg, I believe.
Myoungbee Sung, Desilo

Luxinnovation made the bridge to LIST and found the right laboratory that Desilo could work with. The agency also provided tailored information on how to apply for R&D and innovation funding from the Ministry of the Economy for the joint research project under preparation. Its objective is to bring Desilo’s technology to production level in Europe. The next step will then be real-world pilots with financial institutions.

As a cyber professional, Myoungbee was warmly received by the members of Women4Cyber Luxembourg, an organisation aiming to increase the participation of women in cybersecurity. “This shows that Luxembourg welcomes not only companies, but also people like me.”

Luxembourg: where meaningful conversations happen

The next step is now to create a solid Luxembourg-based team. “We want Desilo Europe to be a Luxembourgish company, not just a Korean outpost,” Myoungbee underlines. The aim is to start hiring locally later this year. Myoungbee will soon relocate to Luxembourg herself – a place she has already fallen in love with.

To intensify the conversation with the financial ecosystem, Desilo is co-hosting the event “Beyond Silos #1: Fighting Fraud Together” with LHoFT on 29 September 2026. “The future of fighting financial crime is finding ways for financial institutions to work beyond their data silos,” Myoungbee says.

In her opinion, Luxembourg is the ideal place to have that conversation. “Luxembourg’s financial centre is large enough to make collaboration between institutions meaningful and connected enough to enable a newcomer like us to build the relationships to make it happen. That’s why we are here.”

Photo credits: Desilo