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  • 1. •SeoulWelcome to the New leadingGlobal Financial Hub
  • 2. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial HubTable of Contents04 4 introduction of Seoul & Korea at a glance 14 14 economy and Finance 30 30 Finance city, Seoul 42 42 useful guidelines for Foreign investors 6 Global City, Seoul 18 Real economy 34 Yeouido International Financial District 44 Seoul Global Center 8 Business environment 20 Attractiveness of Capital Market 37 IFC Seoul 46 Support for Business Setup: Fn Hub Korea 10 local environment 24 Current Status of Financial Industry 40 Introduction of 2009, 2010 overseas IR events 47 licensing Handbook: Fn Hub Korea 12 History and Culture 25 Current Status of Financial Industry Market by Sector 48 FAQ: Fn Hub Korea 28 Current Status of Financial Support 49 Seoul Selected by Global Companies Industries Market by Sector 50 Seoul Selected by Global Companies Macquarie 51 Seoul Selected by Global Companies Credit Suisse 52 useful links 53 epilogue Seoul, Welcome to the NeW leadiNg global FiNaNcial hub Welcome to Seoul, the center of Korea’s economy, politics and culture. Seoul, the dynamic capital of sparkling Korea, harmonizing 600 years of tradition and state-of-the-art information technology, is striving to gain recognition as a city where international visitors and residents want to ‘visit, invest, work and live.’ Seoul has emerged into the spotlight on the global stage and received international attention by hosting various major events including the 1988 Seoul olympics, 2002 FIFA World Cup and the G20 summit in 2010. However, Seoul is still a city shrouded in mystery for some. This brochure is designed to provide a better understanding of Seoul to investors and business leaders. We hope you find various aspects from the pages that arouse your interest in the city. We also expect that the city of Seoul will eventually become the most ‘must-see’ financial hub in Northeast Asia.2 Table of Contents Introduction of Seoul & Korea at a Glance Introduction of Seoul & Korea at Prologue a Glance 3
  • 3. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial HubIntroduction of Seoul& Korea at a GlanceSeoul is a place to achieve all your financial goals and dreams Korea Seoul Nunber of foreigners (in 2009) 870,636 255,749 Language Korean, but English is widely spoken Average income per household About $35,280 About $38,766 (in 2010) Mean 14.2˚C Mean 12.9˚C Air temperature (in 2009) Lowest -20.5˚C ~ Highest 38.3˚C Lowest -12.9˚C ~ Highest 34.4˚C GDP/GDRP (in 2009) About USD 913 billion About USD 221 billion Machinery, Automobiles, Steel, Shipping, Finance, Tourism, IT, Key industries Construction, Electronics, Semiconductor, Conventions, etc. Petrochemical, Telecommunication Ratified FTA Korea-Singapre FTA, Korea-ASEAN FTA, Korea-India CEPA Signed and negotiated FTA Korea-The U.S. FTA, Korea-EU FTA *as of February, 2011 10,039,000 9,459 out of 48,875,000 out of 20,543 in Korea in Korea Foreign Seoul Population Firms Korea (in 2010)4 Introduction of Seoul & Korea at a Glance Introduction of Seoul & Korea at a Glance 5
  • 4. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Introduction of Seoul & Korea at a Glance gdP (unit : US$ 100million) (unit: US$) The GRDP of Seoul is uSD226,856 million (per capita GRDP, 1,000 - - 25,000 uSD 22,597) which accounts for 24.1% of Korea’s total GDP. GDP GNI per Capita Global City, Seoul The city’s economic growth rate against GDP continues to rise growing from 2.2% in 2008 to 3.2% in 2009 (third quarter). 800 - 969.9 20,045 939.4 22,597 - 20,000 600 - - 15,000 Population and area 400 - - 10,000 The area of Seoul is 605km², or 0.6% of Korea’s total area 200 - - 5,000 (100,032km²), and consists of 25 autonomous districts (gu). 67 1.3 The population of Seoul was 10,039,000 as of the end of 0- -0 2010, accounting for 20.5% of the total population of Korea 53 60 70 80 90 00 07 10 19 19 19 19 19 20 20 20 (48,875,000). Including Gyeonggi-do, the province surrounding *Source: Bank of Korea (2008) Seoul, the figure soars to 24,336,000, representing about 49.8% 1hrs~2hrs of the total population of Korea, creating a highly integrated con- sumer market. While Seoul has a high population density, the city 4hrs~ 3hrs~4hrs 2hrs~3hrs has green areas covering 26% (157km²) of its entire area thanks to policies of the city administration to increase the amount of green space for Seoul’s residents. Dobong-gu Area: 20.7km2 Population: 377,000 Gangbuk-gu Area: 23.6km2 Population: 346,000 Nowon-gu Eunpyeong-gu Area: 35.4km2 Area: 29.7km2 Population: 621,000geographical benefits, a global city Area and Population of Seoul by Ward Population: 463,000Seoul, the capital city of the Republic of Korea located in the far eastern region of the Asian continent, is a main gateway to and a Seongbuk-gu Jungnang-gulogistics hub of Northeast Asia whose production accounts for one third of the world’s total output. The city has favorable conditions for Area: 24.6km2 Area: 18.5km2 Population: 481,000 Population: 433,000single-day business trip as there are 51 megacities with a population of over one million within a 3-4 hour flight. Jongno-gu Dongdaemun-gu Area: 23.9km2 Area: 14.2km2 Seodaemun-gu Population: 178,000 Population: 382,000 Area: 17.6km2 Gangseo-gu Seoul Republic of Korea Population: 341,000 Jung-gu Area: 20.7km2 Area: 20.7km2 Gangdong-gu Population: 584,000 Mapo-gu Seongdong-gu Population: 139,000 Area: 24.6km2 Area 605km 2 100,032km 2 Area: 23.9km2 Area: 16.9km2 Gwangjin-gu Population: 474,000 Population: 393,000 Population: 323,000 Area: 17.1km2 Population 10,039,000 48,875,000 Population: 387,000 Yongsan-gu Yeongdeungpo-gu Area: 21.8km2 Location Northwest of the Republic of Korea Northeast Asia (between China and Japan) Yangchen-gu Area: 24.6 km2 Population: 251,000 Area: 17.4km2 Population: 444,000 Songpa-gu Language Korean Population: 508,000 Dongjak-gu Area: 33.9km2 Area: 16.4km2 Population: 677,000 Currency Won (USD 1 = KRW 1,134.8, average exchange rate 2010) Guro-gu Population: 411,000 Gangnam-gu Area: 20.7km2 Area: 39.5km2 System of Government Presidential System Population: 449,000 Seocho-gu Population: 566,000 Area: 47.0km2 Gwanak-gu Population: 412,000 ·Asia’s 4th, and the world’s 15th largest economy Area: 29.6km2 ·High growth potential Geumcheon-gu Population: 552,000 Area: 13.0km2 · ain industries: shipbuilding (world’s top), semiconductor(world’s 3rd), petrochemicals(world’s 3rd), electronics(world’s 4th), M Economy Population: 265,000 automobile(world’s 4th), steel(world’s 6th), etc. ·Strong IT infrastructure and cutting-edge information and communication network ·Excellent accessibility to emerging Asian markets6 Global City, Seoul Global City, Seoul 7
  • 5. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Introduction of Seoul Korea at a Glance Korea and Free trade agreements (Fta) Foreign direct investment (Fdi), 5-Fold increase The Korean government continues to push ahead with free trade The Asian financial crisis in the late 1990s led Korea to imple- agreements(FTA) as a main policy to boost market opening and ment more active policies to attract foreign direct investment. Business environment free trade. As a result of active FTA, Korea is able to provide more favorable environments for foreign investors such as a larger The cumulative amount of inbound foreign direct investment since the financial crisis (i.e. 1998-2008) is five times larger than common market via protection of investors’ rights, expansion of between 1962, the year when Korea started her industrialization markets and increased market accessibility. efforts, and 1997. Foreign investment into Korea continues to rise, as does the number of foreign-invested firms. Effective FTAs •Korea-Chile FTA Effective on Apr. 1, 2004 •Korea-Singapore FTA Effective on Mar. 2, 2006trade Volume •Korea- EFTA FTA Effective on Sep. 1, 2006 talented human Resources •Korea- ASEAN FTA Effective on Jun. 1, 2007Korea has posted consistent increases in trade volume to become the 7th largest trading nation in the world in 2010. Seoul, recording Services effective on May 1, and investments on Sep. 1, 2009 Financial professionals with in-depth knowledge and leadershipuSD 4,674 billion in exports and posting uSD 417 in trade surplus. •Korea-India CEPA Effective on Jan. 1, 2010 skills are essential to compete in sophisticated global financial FTAs awaiting ratification markets. More than 40% of Seoul residents hold a bachelor’s Increase of Trade Volume (after customs clearance) *Source: Korea International Trade Association •Korea-USA FTA Signed on Jun. 30, 2007 degree or above, while 54 universities in Seoul confer master’s and •Korea-EU FTA Tentatively signed on Oct. 15, 2009 doctoral degrees to 35,000 students annually. In addition, there 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 FTAs under negotiation are 75,000 researchers working in 2,466 research institutes (69 Exports 1,722 1,504 1,624 1,938 2,538 2,844 3,254 3,714 4,220 3,635 4,674 •Korea-Canada FTA affiliated with universities and 2,937 with businesses) in Seoul. •Korea-Mexico FTA Imports 1,604 1,410 1,521 1,788 2,244 2,612 3,093 3,568 4,353 3,231 4,257 •Korea-GCC FTA •Korea-Australia FTA Through the city’s abundant academic and research facilities, •Korea-New Zealand FTA •Korea-Peru FTA Seoul is making diverse efforts to nurture high caliber human 4,500 - 4,000 - •Korea-Colimbia FTA resources. Many universities are offering MBA courses in which 3,500 - FTAs under preparation or joint study english is the only language spoken during lectures to develop 3,000 - •Korea-Japan FTA highly skilled manpower for international exchanges in the areas 2,500 - •Korea-China FTA of management and finance. 2,000 - •Korea-China-Japan FTA 1,500 - •Korea-MERCOSUR FTA Exports (after customs clearance / Unit : USD billion) •Korea-Turkey FTA 1,000 - Imports (after customs clearance / Unit : USD billion) •Korea-Russia FTA 500 - •Korea-Israel FTA 0- •Korea-SACU FTA 00 01 02 03 04 05 06 07 08 09 10 20 20 20 20 20 20 20 20 20 20 20 *Source : FTA, Ministry of foreign Affairs and Trade (, 2012 Prospects for the Korean economy (gdP) Investment Promotion systems in Major Asian countries *Source : survey by the Korea Business Center of KOTRA (September 2009)The Koreas GDP growth rate recorded 6.1% in 2010. The oeCD forecasts that Korean economy is expected to grow by 4.3% in 2011and 4.8% in 2012. Korea’s economy is recovering faster than any other oeCD member thanks to an expansionary fiscal policy imple- City Seoul Beijing Hong Kongmented until the third quarter of 2009 as well as excellent export performance. The effects of fiscal spending may gradually be weakened Treatment of domestic and Separate support programs Separate support programs for same treatmentafter 2010. However the Korean economy is forecasted to grow 4.3% (4.7% for the fourth quarter) in 2011, thanks to stock accumula- foreign companies for all foreign invested companies selected foreign invested companiestion, steady export growth, recovery in domestic consumption and a reduced unemployment rate. Korea’s mid-term growth rate between -Subsidy (for the establishment of regional2011 and 2012 is expected to be 4.5%. Main incentive Tax exemption or reduction HQs by multinational corporations) -Tax exemption or reduction*Source: OECD -Attraction of high technologies -Attraction of multinational corporations’ regional HQs No separate Purpose of incentives -Development of business support services -Development of high-tech industries and services incentives Number of Foreign-Invested Companies -Tax exemption or reduction -Subsidy to multinational corporations’ regional HQs 1997 2000 2003 2006 May 18, 2009 Incentive types -Support for business location -Tax exemption or reduction (i.e. corporate income tax 2,274 4,880 8,135 13,034 17,054 -Cash support and export-related taxation)8 Business environment Business environment 9
  • 6. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Introduction of Seoul Korea at a Glance medical Facilities education 1339 Facilities 1339 is the number of the emergency Medical Information There are currently 21 international schools in Seoul. local environment Center. When 1339 is dialed, english-speaking doctors assist foreigners, providing them with relevant medical information on Seoul (city) is planning to establish two more by 2012. Dulwich College, a prestigious private school in the united Kingdom, was emergency situations 24 hours a day. To use the service, dial 1339 founded in Seoul in September 2010. The Dwight School, a well- directly without area code. However, when you call by mobile known school in Manhattan, New York, will establish a branch phone or outside Seoul, dial 02-1339. school in Seoul in 2011. These efforts will add to an excellent edu- cational environment for the children of foreign families residing Seoul global center in infrastructure The center’s MRS (Medical Referral Service) operates 24 hours aSeoul is regarded worldwide as a leading IT city, with top-notch information and communications infrastructure. According to a study day to guide foreign residents in Seoul for better medical services. expenseconducted here by oxford university in 2010, Korea ranked number 1 in terms of high-speed Internet quality. And according to the There are 14 medical centers for foreigners in Seoul. The table below gives a brief overview of educational expenses inRutgers Global e-Governance Survey in 2009, Seoul again ranked number 1 in the world in e-government since 2003. (Contact Info: 010-4769-8212, 010-8750-8212) Seoul and other major Asian cities, showing that foreign residents in Seoul spend less than those in comparable cities.transportation health insurance for Foreign NationalsWith a population of over 10 million, Seoul is currently one of the largest megacities in the world. The National Health Insurance Corporation of Korea operatesHowever, the recently completed public transportation system offers citizens a comfortable means of public transport to all corners of healthcare insurance programs not just for Workplace Policyhold-the capital. The public transportation system of Seoul has been benchmarked by many countries. ers and Community Policyholders but also for foreign residents who hold an insurance policy with it. under the program, foreignbus Subway air policyholders pay only 20% of the medical bill when hospitalized,The network of bus services in Seoul is Consisting of 11 lines that form a huge Seoul has two airports, Gimpo Airport and or 30-50% when they receive outpatient care. There are also pro-comprised of four groups of buses marked transportation network connecting the Incheon International Airport, to link it grams applicable to international medical insurance four different colors representing entire city and its surrounding areas, Seoul with other cities in Korea and the world.Branch line, Main line, Circle line and subways are generally regarded as the most Gimpo Airport is a hub of Korea’s domestic Educational Facilities *Source: Guide for Foreign Residents in SeoulInter City. Services normally start at 04:00 convenient, safe and comfortable public flights connecting the Korean capital and Classification Descriptionin the morning and end at 01:00 the transportation means to travel around with its regional centers. Incheon Interna- A foreign investor may have their child enrolled at a Korean school if he or she is a fluent Korean speaker. Korean schools arefollowing morning. each bus stop has an Korea’s capital area. tional Airport serves international travel- Korean school generally divided into public and private schools, and elementary education at public schools is offered at no cost.information display, which provides route ers departing Seoul to a great choice of Some foreign investors may choose to have their child educated via homeschooling programs via the website,and schedule information of buses in real- destinations around the world. The airport Home schooling, or the United States Distance Learning association (, for the convenience of citizens. was selected as ‘Top of the World’ in the International International school is the most popular choice of the three among foreign investors in Seoul as it offers better quality AeTRA World Airport Satisfaction Survey. school school programs than the other two. Incheon also has garnered the top spot in the ACI Airport Service Quality (ASQ) passenger survey for five consecutive years. Educational Spending (Unit: US$) Seoul Singapore Hong Kong School Level Seoul foreign Korea Kent Foreign English School of Yew Chung International SAS 1) OFS 2) school School Foundation school Kindergarten 5,164 10,696 16,140 11,416 7,259 7,899 Primary school 10,788 11,213 19,406 12,684 6,891 16,007 Middle School 10,733 11,803 20,548 13,952 10,585 13,284 High school 13,592 12,688 21,816 15,85510 local environment local environment 11
  • 7. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Introduction of Seoul Korea at a Glance Seoul is a creative city where state-of-the art-technology and natural beauty coexist in true harmony. Seoul has been striving to achieve an eco-friendly environment for better quality of life while maintaining its competitiveness by constructing modern infrastructure on a global scale. Related projects include construction of large-scale green areas like Cheonggyecheon, the Floating Islands, and introduction History and Culture of innovative designs in Dongdaemun Design Plaza. Thanks to these efforts, Seoul was designated as the World Design Capital 2010 in an evaluation by the International Council of Societies of Industrial Design. Seoul was designated as the 2010 World Design Captial and uNeSCo Creative City for Design. dongdaemun design Plaza Dongdaemun Design Plaza, the symbol of the World Design Capital Seoul 2010, is a landmark of the creative industry in the heart of Seoul. Dongdaemun Design Plaza represents Seoul’s aim to become the hub of Asia’s design industry. The facility houses a multi-Seoul, a city with a modern skyline and cutting-edge technology, still retains numerous features of its historic traditions. It is one of a purpose convention hall and a number of exhibition halls that provide a test-bed platform for various corporate design products as wellfew cities in the world where residents live an urban life while enjoying classic oriental beauty. The people of Seoul and international as a venue for international cultural exchanges and cooperation. The plaza’s uniquely and specially designed features vividly showcase thevisitors can savor the diverse cultural characteristics everyday throughout the city. beauty of Seoul.insadong – a mixture of history and modern times cheonggyecheonInsadong, the name of a downtown area in Seoul, has been favored by local residents and foreigners for a long time due to its sustained Cheonggyecheon, a 5.8 km stream running through downtown Seoul, has been restored to provide a clean and pleasant modern publictraditional environment. Insadong encompasses a mix of traditional and modern atmospheres, representing the “culture of the past and recreation space. Considered as a major success in urban renewal and beautification, Cheonggyecheon represents the new urban struc-the present.” Insadong has been the largest market for antiques and artwork in Korea and now is well known as a historical district. ture connecting cultural and environmental resources. All along Cheonggyecheon, local residents and visitors enjoy clean water, fresh air, and natural habitats in the center of the city.galleries museumsSeoul abounds in cultural facilities of all kinds, where people can enjoy exhibitions and stage performances throughout the year. Thereare 358 museums in Korea, with 31 being funded and operated by the central government, including the National Museum of Korea,National Palace Museum of Korea and the National Folk Museum located in downtown Seoul.The National Museum of Contemporary Art, located in a scenic park in Gwacheon, just south of Seoul, features an extensive collec-tion of Korean and Western art works of the 20th century. Seoul Museum of Art near City Hall is another significant contemporary artmuseum that holds six exhibition halls, additional rooms for lectures and seminars and other related facilities.12 History and Culture History and Culture 13
  • 8. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hubeconomy Finance Seoul is showing rapid growth as a financial center of Asia14 economy Finance economy Finance 15
  • 9. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance current Status of Seoul Financial industry The GRDP of Seoul, the business and financial services center of The Korean government has focused on making Seoul a world-class Korea, accounts for 24% of the country’s GDP (Bank of Korea, city with a business environment that is attractive to foreign investors 2010). Furthermore, 250 multinational corporations are located in economy Finance and financial professionals. In this regard, the government proposed the “Roadmap to Create a Financial Center in Northeast Asia” and Seoul, including a number of Fortune 500 corporations. And 144 out of 146 foreign financial service institutions currently operating in economy Finance designated the Yeouido district as Seoul’s official financial cluster to Korea are located in Seoul. Moreover, 8,854 financial and insurance improve the city’s financial competitiveness in January 2009. In late service providers - 24.8% of the country’s total- are located in Seoul, 2009, the domestic stock market achieved a landmark as the FTSe while 227,935 financial and insurance service workers - 36.8% of the raised the global equity index series of Korea from ‘advance emerging’ country’s total - work in Seoul. to ‘developed’. The central government, the city and private enterpris- es are putting forth a greater effort to make Seoul one of the top three international Features Seoul hits a record high financial hubs in Asia by 2015. Seoul’s significance as a production and consumption market has con- 250 Multinational in the Global Financial tinued to increase with regard to the Northeast Asian economic block Corporations, Seoul hits a record highin the gFci, ranking 24th, continuing (Korea, China and Japan). Some international organizations expect Centres Index (GFCI) its rapid ascent over the last two years that the scale of the block economy will eventually be comparable to 144 foreign Financial The 8th Global Financial Centres Index (GFCI) was published, once that of the eu and NAFTA by 2020. of the three Northeast Asian Institutions again verifying Seoul as a competitive city among global financial cen- countries, Korea’s importance is being heightened as the government ters worldwide with reliable scores. The GFCI is calculated based on continues to implement various measures intended to raise its inter- on-line surveys conducted among financiers along with the evaluation national profile and improve its institutions by enhancing industrial results derived by 75 external institutions, including IMD and WeF, competitive advantages. Indeed, Korea could leverage the economic in human resources, business environment, market accessibility, infra- growth potential of the Asian region as a great opportunity, and the structure, general competitiveness and other categories. In the latest country should have comparative advantages in exploiting the market survey, Seoul achieved a sharp increase in its score, placing the city potential of the united States, the world’s largest market, once the 24th in the ranking. Its ranking has been rising at a remarkable rate, Korea-uS FTA, the final negotiations for which were completed in outpacing 29 other cities in just 18 months. Confirming the GFCI December 2010, enters into force. result, a “Global Financial Centres after Crisis” report announced by Deutsche Bank in August 2010 showed that the competitiveness domestic Features of Seoul in the international financial business category grew 44%, Seoul and the metropolitan region exhibit stronger demand for outshining a number of other famed cities. Seoul was also selected as foreign investment than other regions in Korea. Seoul offers easy the most rapidly growing financial city in Asia. geographic access and has diverse political, economic and cultural functions. In addition, many key businesses and highly educated human resources are concentrated in the region. The concentration of foreign diplomatic missions and foreign-invested businesses will Seoul Ranking continue and more business leaders will stay in Seoul for an extended period. Therefore, Seoul has strong potential for the development of 24 25 - related industries and facilities. 28 35 35 - 42 43 The Operating Fund Structure of Banks (2008) 45 - 48 Production Amount Number of Entities Number of Workers 51 53 Nationwide Seoul Nationwide Seoul Nationwide Seoul 55 - Size US$ 34,703 US$ 17,626(50.7%) 35,222 8,651(24.6%) 613,580 199,312(32.5%) FC 2 nd FC 2 nd FC 2 nd FC 2 nd FC 1 st FC 1 st FC 1 st CI f GF o 1) lf( 1 st ) ) ) ) ) ) ) I2 I3 I4 I5 I6 I7 I8 (G 8’ (G 9’ (G 0’ (G 7’ (G 8’ (G 9’ (G 0’16 17 0 0 1 ha 07’ 0 0 0 1 economy Finance economy Finance
  • 10. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance “The Korean economy has staged an impressive recovery greatest Potential in 2011 and 2012 economy Finance since early 2009 thanks to the authorities’ supportive mac- According to the latest oeCD outlook, the Korean economy is ex- roeconomic and financial policies, and the normalization pected to grow 4.3% in 2011 and 4.8% in 2012. These growth rates Real economy in global trade…” are higher than the uSA, Japan, and all other oeCD nations. Real economy (Source: IMF, Statement at the Conclusion of the 2010 Article IV Consultation Mission to Korea, July 6, 2010) Financial Stability– low government debt to gdP Ratio According to the oeCD’s calculation of government debt to GDP ratio, which reflects the government’s finances, Korea has emerged as one of the most competitive nations with high government financial stability. Korea’s debt to GDP ratio in 2009 was only 33.8%, much lower than the oeCD average of 53.9%, ranked 9th among the 31 The second highest The Second highest gdP growth in 1Q 2010 oeCD member countries. Korea is projected to reach at 26.2% level low Government Debt GDP growth rate among In the first quarter of 2010, Korea achieved the second highest GDP by 2015 to GDP ratio growth rate among oeCD member countries, following Ireland. The oeCD member countries growth rate is more than three times higher than the oeCD average. Korea’s balance of payments for goods The GDP of Korea in 2010 reached at uSD 939 billion, ranking in 2010 reached $41.9 billion 15th in the world. Korea’s trade surplus reached a record uSD 41.7 billion in 2010 while the nation’s current account stays in the black for the 10th straight month and 13th consecutive year. Korea becoming the ninth-largest trading nation in the world in 2010 by moving up one notch past Belgium, while becoming the seventh-biggest exporter by surpassing Italy and trailing France. The Second Highest GDP Growth in 1Q 2010 Greatest Potential in 2010 and 2011 Financial Stability– Low Government Debt to GDP Ratio (%) 2.7 (%) 3.0 - 200 - 2.5 - 2.1 150 - 2.0 - 1.5 1.5 - 1.2 2008 2009 2010 2011 100 - 1.0 - 0.7 0.6 OECD Euro Area U.S.A JAPAN KOREA IN % 50 - 0.3 6.2 *Source: OECD 0.5 - 3.2 3.2 3.0 4.3 33.8% 2.8 2.3 0.1 2.7 1.8 2.0 0.5 0.5 1.2 *Source: OECD 0.4 0.2 0.0 - 0- d n ly d ce A y a nd ia a -1.2 ar ad an an re pa S. Ita l nd da n A CD UK ce a an -2.4 ra la re pa m S. U. Ko n al Ja gl an na la er st Fr OE Ca U. r Ko Ja Ze En Ge Ire Au itz Fr Ca -3.3 *Source: OECD ew Sw -4.1 -5.2 N18 Real economy Real economy 19
  • 11. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance Within 12 years since Korea fully opened its financial markets in The Korean bond market has been a favorite investment vehicle for 1998, the number of foreign investors has steadily increased by over international investors since the outbreak of the global financial crisis 30,000. In 2009, equity shares held by foreigners accounted for due to its stable performance. The local bond market, under the belief Attractiveness of 32.6% of the total stock market and 5.6% of the overall bond market. that the domestic economy will continue its strong growth, is now an attractive proposition to foreign investors. For example, in June 2010, Attractiveness of indicators of Korea’s Strong capital markets maturing bonds held by foreigners reached a record high of uSD 6 Capital Markets 1. Stock market billion. Capital Markets • In 2010, the market capitalization of the Korean stock market reached uSD 1091 billion, up sharply from uSD 257 billion in 3. derivatives market 2009. The Korean Derivatives Market opened in May 1996 with the intro- • In 2010, the total value of share trading volume increased to uSD duction of KoSPI 200 futures. Due to its explosive growth, the KRX 1,607 billion from uSD 1,569 billion in 2009. Derivatives Market surpassed prominent American, european, and other international exchanges to become the world’s number one in Amid the recent global financial crisis, the Korean stock markets have terms of volume and contract price of the stock index (KRX’s KoSPI The Korean Derivatives shown a particularly strong resilience. The KoSPI(Korea Composite 200) for futures and options. Stock Price Index), the index of all common stocks traded on the Market surpassed Stock Market Division of the Korea exchange, recovered 48.8% in American, european, the year from September 2009 to September 2009. It was the fifth World Ranking and other international strongest performance among the oeCD member countries. 2005 2007 2009 exchanges 2. bond market Option Rank 1 st Rank 1 st Rank 1st KOSPI 200 • In 2009, the total value of bonds listed reached uSD 871 billion, Futures Rank 5th Rank 8th Rank 6th increased by new issuance of uSD 216 billion from uSD 655 bil- Stock futures Rank 1st Rank 1st Rank 7th lion in 2008. US dollar futures Rank 11th Rank 10th Rank 6th • In 2010, the total value of bond trading recorded uSD 505 billion, 3 years Korean Rank 9th Rank 11th Rank 10th up from uSD 402 billion in 2009. treasury-Bond futuresStock Market Bond Market Size of Bond Market(USD Billion) 2008 2009 2010 (USD Billion) 1,800.0 - 3,000 - 1,607 1,569 (USD Billion) 1,500.0 - 1,432 1,000.0 - 2,500 - 871 1,200.0 - 800.0 - 2008 2009 2010 2,000 - 1,091 Corporate Bond Government Bond 655 834 900.0 - 600.0 - 505 1,500 - 402 600.0 - 400.0 - 1,000 - 336 471 300.0- 200.0 - 500- 0.0 - 0.0 - 0- Market Total Value of Value of Total Value of a a ia nd re ng in re l po ra la Ko Capitalization Share Trading Bonds Listed bond Trading Ch Ko g ga st En ng Au n Si Ho *Source: WFE annual report 2010 *Source: WFE annual report 2010 *Source:BIS Quarterly Review, June 201020 Attractiveness of Capital Markets Attractiveness of Capital Markets 21
  • 12. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance To facilitate entry into Korea’s capital market and to improve satisfac- 5. Fund market– boosting Korean capital markets tion for both local and foreign investors, the Korean government has The opening of the Korean fund market was a part of the opening of paid special attention to expanding the scope of financial businesses, the Korean capital markets. As more private investors began partici- Attractiveness of improving regulations, and enhancing the systematic convenience of financial services. In particular, the Financial Services and Capital pating in the fund market, the amount on deposit in their accounts increased rapidly, eventually boosting the Korean Capital Market. The Attractiveness of Markets Act(FSCMA) was enacted in 2009 with the purpose of en- amount deposited in the fund accounts reached uSD 285 billion in Capital Markets hancing the competitiveness of Korea’s capital market and to establish 2009. Capital Markets globally competitive investment banks. 6. National Pension Fund – Steady, Rapid Rise 4. Retirement Pension Fund – First Retirement Pension Plan The national pension fund has expanded in size steadily and exponen- introduced in 2005 tially, and has now grown as large as other advanced nations. Accord- Korea launched its first retirement pension plan in December 2005. ing to the National Pension Service(NPS), the amount of national Since the pension plan was enacted, both the number of registra- pension fund increases uSD 1.8 billion each month and will exceed tions and its capital volume have increased rapidly, reaching almost uSD 352 billion in 2012. According to NPS, the national pension 2,500,000 members and uSD 12 billion respectively as of the end of fund of Korea ranks as the world’s fourth largest after surpassing 2009. In the future, the retirement pension fund is expected to bring CalPeRS (California Public employees’ Retirement System) in 2009. stability to Korean financial markets and upgrade the capital market Active overseas investments have become a main reason for its profit- to an advanced level. ability and exponential growth. Therefore, the NPS plans to boost its overseas investment, particularly with a wide-ranging expansion of foreign equity. Retirement Pension Fund National Pension Fund 25,685 (USD million) (USD billion) 280 300 - 250 - 238 12,094 235 204 200 - 187 5,250 162 150 - 2,943 814 16 100 - 2 2 2 2 2 05 06 07 08 09 10 2 .1 .1 .1 .1 .1 .1 20 20 20 20 20 20 06 07 09 10 05 0822 23 20 20 20 20 20 20 Attractiveness of Capital Markets Attractiveness of Capital Markets
  • 13. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance Korean financial industry output, which accounted for 8.2% of the market trends by Sector country’s GDP in 2007, is increasing each year, but is still lower banking industry than the 10~15% rate of developed countries. Therefore, the growth Bank deposits have achieved steady growth despite low interest rates. Current Status of potential of the Korean financial market is still greater than that of developed countries. Furthermore,the preference for safe assets will continue while the market funding situation displays greater short-term volatility because Current Status of of the global economic recession and financial market unrest in 2009. Financial Industry The Korean economy has developed a strong constitution through Financial Industry steady improvements since the foreign currency crisis of 1997, en- insurance and annuity-Related Service industries abling it to resist instability. It has also demonstrated a rapid rate of The local insurance industry will encounter fierce competition from Market by Sector recovery from the global financial recession triggered by the subprime other financial service industries in view of the Financial Services and mortgage crisis in 2007 – ranking first among oeCD countries and Capital Markets Act, which took effect in 2009, and the professional 6th among G20 countries. financial product sales service system, which is currently under review for introduction. Sales competition with banks will intensify further Furthermore, Korea demonstrated a lower investment risk than Japan still as local banks actively promote bancassurance and retirement “A lower investment risk and China in Northeast Asia according to a report published by annuity contracts in order to extend their earnings base. Competition than Japan and China Credit Suisse based on a comprehensive assessment of foreign invest- between life insurance and non-life insurance companies in the health in Northeast Asia” ment risk levels in 42 countries, including developed countries, latin insurance market will also intensify as the former group actively America and Africa, reviewing their current account balance against launches actual loss coverage medical insurance. by Credit Suisse GDP, government liabilities, bank loan-deposit ratio, credit default and swap spread. Foreign financial companies have been actively locating in Korea since 1997. The following table shows growth in terms of market share by industry as of 2007. Trends in fund Raising by Local Banks (Unit: USD million) Items 2008 2009 2010 Liabilities 1,281,760 1,315,248 1,414,380 Foreign Investment Risk of Korea Deposit Liabilities 693,442 797,890 863,985 Country Australia UK USA Korea Japan China - Won Currency Deposits 567,641 664,948 776,049 - Foreign Currency Deposits 34,218 36,017 36,569 Risk 9 11 13 19 34 42 *Source: Credit Suisse, March 11, 2009 - Certificate of Deposits (CD) 91,398 96,628 51,045 Borrowings 411,874 395,944 388,179 Korean financial industry output ratio to GDP - Won currency borrowings 41,022 47,272 46,756 *Source: SIFIC 2009 Trends in Market Shares of Foreign Securities, - Foreign Currency Borrowings 67,241 58,552 64,829 Fund Management and Life Insurance Firms (Unit:%)(Unit:%) 8 - Bonds sold under Repurchase Agreement 27,574 18,555 16,070 7.82 8- 7.34 1997 Fiscal Year 2007 Fiscal Year - Won Currency Bonds 201,230 191,517 180,000 7- Securities Companies 6.7 25.5 - Foreign Currency Bonds 53,076 60,104 66,015 6.09 6- Fund Management Firms 0.2 28.3 Other Liabilities 176,444 121,414 162,216 Life Insurance Companies 1.0 21.4 Shareholders’ Equity 79,547 95,613 103,423 0- *Source: Financial Service commission Total Liabilities and Shareholders’ Equity 1,361,308 1,410,860 1,517,802 80 90 00 07 19 19 20 20 *Source: Financial supervisory Service, financial statistical Information system 24 Current Status of Financial Industry Current Status of Financial Industry Market by Sector 25
  • 14. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance credit card Sector Securities Sector The Korean credit card industry grew rapidly after the government In the first half of 2008, the inflow of funds into the equity fund/ Current Status of implemented policies designed to promote credit card usage and thereby stimulate the economy by increasing consumer spending other securities markets remained slow because of the global busi- ness recession, fear of inflation resulting from rising interest rates Current Status of following the financial crisis of 1997. Credit card companies secured and oil prices, and a decline in willingness to invest in view of a Financial Industry a solid foundation for growth as consumer spending increased while possible broaden financial crisis being triggered by the u.S. financial Financial Industry the employment situation improved amid economic recovery in late crisis. Stock prices fell and the trading amount declined as a result of Market by Sector 2005. continued net sales by foreign investors due to the global financial Market by Sector crisis. In 2009, however, the local securities market recovered rapidly After the resumption of growth in 2006, the total usage amount of and the KoSPI index climbed back to 2,000 or higher as the Korean all credit card companies in 2007 increased to uSD 364 billion, economy bounced back from the worldwide economic crisis. representing an increase of 8.1% over the preceding year, while the total number of cards newly issued as of the end of 2007 increased to asset management Service 89,565,000, an increase of 8.9% over the preceding year. The Korean asset management sector has maintained consistent growth and its earnings have also increased steadily. The total balance even more to boost economic activities, Korean government decided of mutual fund investments received by local asset management firms lowering the rate of credit card member business fees since Febru- has continued to grow since the end of March 2006. As of the end ary 2009. The government lowered the annual card payment service of March 2008, it had increased to uSD 307 billion, representing an fee burden by 28% by reducing the card payment service fee of increase of 38.1% over the same period of the preceding year (and 86,000 member businesses belonging to conventional markets from 12.7% over the preceding quarter), and has since recorded more 2.0~3.5% to 2.0~2.2%, based on autonomous action on the part of dramatic growth. credit card companies. The government also introduced measures to fundamentally eliminate excessive differences in payment service fee rates among the credit card companies. Credit cards have become Korean consumers’ most preferred means of payment as they can now be used to pay for public transportation services. In addition, e-commerce has taken off, and the safety and Total Balance of Mutual fund Investments convenience of paying by credit card have been enhanced. (Unit: USD million) *Source: Asset Management Association of Korea Number of Newly Issued Cards 400,000 - 350,000 - 120,000 - 300,000 - 114,945 100,000 - 250,000 - 80,000 - 200,000 - 60,000 - 150,000 - 40,000 - 100,000 - 20,000 - 50,000 - 0- 0- 98 99 00 01 02 03 04 05 06 07 08 09 10 Q Q Q Q Q Q Q Q Q .1 .2 .3 .4 .1 .2 .3 .4 .1 19 19 20 20 20 20 20 20 20 20 20 20 20 06 06 06 06 07 07 07 07 0826 Current Status of Financial Industry Market by Sector Current Status of Financial Industry Market by Sector 27
  • 15. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub economy Finance economy Finance current Status of business Services industry As of December 2010, the Korean Bar Association had 10,263 Average daily trading volume increased by approximately 15 times individual lawyers belonging to 14 regional branch associations, and from 4,415 contracts in 1999 to 66,067 in 2008, with a marked 3,234 members including 1,471 lawyers belonging to 480 law firms. Current Status of increase of 20% in 2008 over 2007. The average daily number of open account agreements increased 57 times, from 2,731 contracts in accounting and taxation Services Current Status of 1999 to 155,835 contracts in 2008, with the sharpest rate of increase The revenues of accountants nationwide in 2007 were broken down Financial Support occurring since 2005, because of increased trading by institutional into management consulting worth uSD 684 million (42.6%), Financial Support and foreign investors. The trading volume and the number of open accounting audits worth uSD 569 million (35.4%), and tax recon- Industries Market account agreements in the Korean securities markets have grown cilement and other tax services worth uSD 353 million (22.0%). Industries Market significantly since 1999. The equity derivatives market has increased Accounting firms place a greater weight on consulting on taxation, by Sector to become No. 1 in Asia, while the bond derivatives market has risen to become the world’s 10th largest. MA, management and education than on their original service of conducting accounting audits. by Sector legal Services Recently, large accounting firms have enhanced the reliability of their The legal service sector in Korea has grown rapidly in terms of the services by maintaining membership in, or mutually cooperative number of service providers and size of the market (sales amount). relationships with, foreign accounting firms, depending on the scope As of the end of 2006, the market value of domestic legal services of their business alliance. was approximately uSD 2.7 billion. There were 11,341 firms with a Meanwhile, the demand for services related to ethical or law-abiding equity derivatives market : combined total of 56,836 employees. management will grow due to the progress of globalization, including Current Status of Legal services No.1 in Asia the drafting of review reports on corporate governance restructuring Number of Number of Sales Workers and internal control systems in connection with the introduction Bond derivatives market : of international accounting standards and transparent accounting Firms(entities) (persons) (US$ million) 2003 10,240 50,750 1,929 The World’s 10th largest systems. As of the end of November 2010, the Korean Institute of 2004 10,634 52,769 2,175 Certified Public Accountants had 13,686 members (including 4,292 10,858 53,572 2,185 2005 inactive members). 2006 11,341 56,836 2,686 *Source: ‘National Basic Statistics’ Korea National Statistics Office Recently, some large tax accounting firms extended the scope of their services to international taxation-related areas hitherto provided by accounting or law firms in a limited manner. It is estimated that ac- Daily Average Trading Volume of Futures, Trend in Open Account Agreements and Turnover Rates (Unit: Point, contracts, USD million) counting and law firms’ encroachment into the tax service market has reached uSD 4,109 million a year. Daily Average Total Annual Daily Average Open Annual Trading Turnover rate(B) Trading Volume(A) Trading Volume Account Balance Amount (A/B) 1999 4,415 295,833 2,731 1.48 29,078 2000 6,305 1,538,507 7,251 0.79 152,191 2001 37,900 9,323,430 28,859 1.2 981,176 2002 52,369 12,777,991 67,085 0.71 1,342,955 Current Status of Accounting and Taxation services 2003 41,472 10,285,042 51,010 0.74 1,124,052 Tax Management Fiscal Year Auditing Total 2004 29,409 7,352,307 73,321 0.37 813,023 Reconcilement consulting, etc. 2005 45,073 11,223,244 85,311 0.48 1,234,152 2004 409 243 536 1,188 2006 41,877 10,343,605 117,428 0.33 1,122,370 2005 460 268 579 1,307 2007 55,102 13,555,136 148,226 0.34 1,455,094 2006 507 320 645 1,472 08.1~9/19 66,067 9,513,660 142,315 0.42 1,281,950 2007 569 353 685 1,607 *Source: Cretop *Source: Korean Institute of Certified Public Accountants (Exclusive of the 400 or so individual accountant offices)28 Current Status of Financial Support Industries Market by Sector Current Status of Financial Support Industries Market by Sector 29
  • 16. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial HubFinance City, Seoul Seoul is on its way to becoming the city chosen and trusted by global investors30 Finance City, Seoul Finance City, Seoul 31
  • 17. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Finance City, Seoul Finance City, Seoul Finance City, Seoul Finance City, SeoulFinancial Strengths of Seoul distribution of Financial Service industries in SeoulSeoul has a sufficiently large market and steady potential demand for financial services. Financial service companies in Seoul are concentrated in Gwanghwamun, Gangnam and Yeouido. However, the Seoul MetropolitanIt represents about 50% of Korea’s entire financial services, as the majority of the nation’s Government plans to develop the International Financial District and IFC Seoul in Yeouido and to locate more business service func-financial service experts and key institutions are concentrated in Seoul, including 61 tions there.securities firms (including the Korean head offices of 14 foreign securities firms), 59 assetmanagement firms, 48 insurance companies, a number of key asset management firms, 6.2% 0-10the Bank of Korea, and the Financial Services Commission. 10-30 Dobong-gu 30-60active Support from central and local governments 60-150Both the Korean and Seoul Metropolitan governments have steadily endeavored to ac- 150-250commodate foreign financial service providers by improving the city’s financial service in- Gangbuk-gu 250-500 Eunpyeong-gu Nowon-gufrastructure, including its institutional systems. Consequently, Korea has eased regulationsrelated to financial services faster than China and Japan. In particular, Korea’s financialservices market has developed more rapidly, as it was opened to foreign capital after the Jungnang-gu Seongbuk-guforeign currency crisis of 1997 and the enactment of the Financial Services and Capital 12% Jongno-guMarkets Act in 2009. The central government has promoted diverse policies aimed at Dongdaemun-gu Seodaemun-gugrowing the financial services market, including extensive mitigation of capital market Gangseo-guregulations as provided under the Financial Services and Capital Markets Act, interna- Mapo-gu Jung-gu Seongdong-gu Gangdong-gutionalization of the Korean won (promotion of the wide use of the Korean won), and Gwangjin-gusteady efforts to liberalize the foreign exchange market. Furthermore, the government has Yongsan-gu 7.9% Yeongdeungpo-gupushed ahead with policies designed to develop a financial service hub, including enact- Yangchen-gument of the Act on the Formation and Development of Financial Hub in 2007, following Dongjak-gu Songpa-guits implementation of the Strategy for Developing a Northeast Asian Financial Service Guro-gu Gangnam-guHub in 2003, and its designation of Yeouido as an International Financial District. Seocho-gu Gwanak-gu Geumcheon-gu 12.24% 7.1%32 Finance City, Seoul Finance City, Seoul 33
  • 18. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Finance City, Seoul Finance City, Seoul Yeouido International Yeouido International Financial District Financial Districtgeneral Status Wall Street of Korea, Yeouido plays a central role in shaping Seoul into a financial hub of Asia. A convenient working and residential en-The Yeouido International Financial District, designated by the vironment offered by ‘a city within a city’ will allow multinational financial institutions and talented professionals to demonstrate theircentral government and controlled by the city government, has full potential and gain a competitive edge.the following advantages: Features of Financial Services business in Yeouido Financial and insurance service companies and the related workforce in Yeouido, Yeongdeungpo-gu, account for 8% of all financiallocation and insurance companies and 15.6% of the entire financial and insurance workforce respectively in Seoul. These are the second highest• Key transportation route connecting the south and north parts figures next to those for Jung-gu, but reflect a higher average ratio of employees per business in Yeouido. of Seoul along the Hangang River• Hub of financial, political and press services Formation of Korea’s best infrastructure• Commercial buildings account for 61.9% of all buildings in the 93 out of 291 financial institutions, 42 out of 68 asset management firms and 8 out of 11 futures companies have their headquarters in area Yeouido. It already constitutes Korea’s best financial district with a concentration of related financial service institutions.transportation• Subway lines 5, 9 and the New Ansan line (under planning), two urban express highways, and three regional trunk highways pass through or connect with Yeouido.environment• Sufficient green areas have been developed, including Yeouido Park, Hangang Public Park, and Saetgang eco Park Cluster. As finance and securities functions are concentrated there, 8% of all financial and insurance companies in Seoul and 15.6% of Number of Financial Service Providers and Workers Located in Seoul the workforce are located in Yeouido. Asset Accounting / Banks(50) Securities(59) Insurance(53) Futures(11) Management(68) Consulting / Law(50) Total Korean Foreign Korean Foreign Korean Foreign Korean Foreign Korean Foreign Korean Foreign Downtown 9 37 9 12 17 15 1 1 2 16 7 8 134 Gangnam - 1 5 - 6 5 - - 6 1 9 14 47 Yeouido 2 - 31 1 1 1 8 - 34 8 1 6 93 Yeouido Other 1 - 1 - 6 2 - 1 1 - 3 2 17 Yeongdeungpo-gu Total 12 38 46 13 30 23 9 2 43 25 20 30 291 *Source : Seoul City Government, as of December 200834 Yeouido International Financial District Yeouido International Financial District 35
  • 19. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Finance City, Seoul Finance City, Seoul Yeouido International IFC Seoul Financial Districtmultiple Related Facilities and institutions International Finance Centre Seoul (IFC Seoul), one of the core features of Seoul City’sAt present, Yeouido is the home of financial regulatory agencies such as the Financial financial hub project, provides benefits and reflects the progress of the project to inves-Services Commission and the Financial Supervisory Service as well as the Korea Stock ex- tors. IFC Seoul, located in the heart of the Yeouido district, is an innovative mixed-usechange. The location of these financial watchdogs in the area offers such benefits as easy development incorporating offices, hotels, retail, and leisure facilities.sharing of information and communication in operating a financial services business. The 32-story one IFC provides a fully flexible space with multiple layout possibilities. With a contract leasable area of 72,606 sq. meters, the building will accommodate aboutinstitutions offering Financial Services 200 occupants per floor, depending on usage requirements. In addition to high space ef-A total of 34 securities companies are operating in Yeouido, including Daiwa Securities ficiency and floor-to-ceiling windows, one IFC offers exceptional views of Yeouido ParkSMBC, Mirae Asset Securities, Meritz Securities and foreign securities companies. In and the Hangang River.addition, 44 asset management firms have a presence in Yeouido, including Allianz AssetManagement, Franklin Templeton Investment and Trust Management, and Truston Asset IFC Seoul, designed by world-renowned Arquitectonica, is composed of four cutting-Management. Many futures companies are also located in Yeouido, including Samsung edge style buildings – one, Two, Three IFC towers and a 5-star hotel - scheduled forFutures, NH Investment and Futures, KB Futures, KR Futures and Hyundai Futures. completion in 2012. When finished, IFC Seoul will add a new landmark to the city’s skyline and will support a thriving and vibrant community, featuring shops, restaurants,Financial Research institutes and an art center.The Korea Capital Market Institute and the Korea economic Research Institute arelocated in Yeouido. “My inspiration for IFC Seoul is based on oriental landscape paintings featuring precipitous mountains. The four vertical towers are designed as ifSince Yeouido was designated as an international financial cluster at the beginning of they were monuments shaped naturally through a unique pattern of ero-2009, the Korean government has afforded all kinds of benefits to the financial sector, sions. The idea behind it is to represent a modern workplace that pursuesincluding tax breaks and easing of regulations to nurture Yeouido into an international fi- efficiency and productivity, yet maintains sensuous expressionism.”nancial district. Seoul also offers a wide range of supporting infrastructure in the Yeouido (Bernardo Fort-Brescia, Principal, Arquitectonica)area to grow the city into a world-class financial center. As its core element, IFC Seoul isready to deliver on this bold financial vision.36 Yeouido International Financial District IFC Seoul 37
  • 20. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Finance City, Seoul Finance City, Seoul IFC Seoul IFC SeoulIFC Seoul so far has reached a number of tenancy agreements with major global financial institutions. For example, ING Investment Details of IFC SeoulManagement, ING Real estate Investment Management and Daiwa Securities recently signed long-term leases, and Deloitte Korea, theglobal accounting and consulting firm, agreed to occupy nine floors of IFC Seoul for 16 years starting in 2011. Recently, IFC Seoul also • Construction of Seoul Financial business cluster center and flagship facilitysigned an agreement with Conrad Hotels. Purposes • Improvement of infrastructure to attract global financial institutions and multinational enterprises • Construction of an efficient industrial network comprising financial services, legal and accounting services • Project Name: Seoul International Finance Centre (International Financial Centre Seoul) Location and • Project Owner: Seoul Metropolitan Government, AIG Global Real Estate Development Project Owner • Location: 23 and 23-1 Yeouido-dong, Yeongdeungpo-gu (Former site of Small and Medium Business Exhibition Center)an accessible efficient transportation Network • Building Area: 505,694m2, Site Area:33,058m2The Seoul Metropolitan Government plans to allocate KRW 124.7 billion (uSD 111.6 Height(m) Total area(m2) Completion Date Remarksmillion) to eliminate chronically congested areas and improve traffic conditions around Office Tower II (29 stories) 171 65,015 December 2012ramps and intersections, creating a smoother east-West flow around Yeouido Park. Also Office Tower II (55 stories) 279 132,586 December 2012under consideration are additional ramps connecting the olympic Highway and Yeouido, IFC Composition Office Tower I (32 stories) 194 72,606 March 2011 Hotel (38 stories) 178 76,786 June 2011 Early constructionas well as monorail services between Yongsan and Yeouido. Shopping Mall(Underground 3 stories) - 73,584 March 2011 and operation Underground Parking (4~7 stories) - 86,696 March 2011easy and convenient Public transportation Development Method Seoul Metropolitan Government (land Lease), AIG (development, construction and operation)Yeouido Station, serviced by Seoul Metropolitan Subway line 5 and Seoul Metro line 9, Project Budget USD 1.33billion (Capital: USD 400million, Financing: USD 934 million)is directly connected to IFC Seoul through an underground passage, making travel easyand convenient. on line 5, it takes 15 minutes from Gwanghwamun Station. on line 9, Construction Period 2006~2012the station is 11 minutes from Gangnam express Bus Terminal, 17 minutes from Gimpo • 46%, on schedule, as of November 2010 ConstructionInternational Airport and 43 minutes from Incheon International Airport. Progress • Early construction and operation are scheduled for Office Tower I, Hotel and Retail Mall Lease Period Donation after 99 years (50+49 years) (BOT contract)Yeouido transfer centre and taxi Services • Deloitte, a global accounting and management consulting firmlocated next to IFC Seoul, the Yeouido Transfer Centre will make it easier than ever to Occupants • Youngpoong, Korea’s largest bookstore and culture space, and CJ CGV, the operator of Korea’s largest multiplex cinema chainuse local buses and taxi services. • The Hilton and Conrad Hotels Rental • ING Asset Management, ING Real Estate Asset Management (‘10.05), Agreements • Daiwa Securities (‘10.09) Target Sectors • Global financial Institutions and multinational enterprises and Business • Financial services, legal/accounting and other related business • Will be positioned as the landmark building of financial services in Seoul • Will enhance synergy by integrated global multinational financial service businesses and by developing the financial service cluster _ Will build asset management service around the development of large-scale real estate projects Future Plans _ Will promote growth into a specialized financial service by building a venture capital hub that will support IT BT businesses _ Will build ‘Back office’ in the Greater Seoul are equipped with an outstanding IT infrastructure and transportation network • Will develop the back office (computing and call centers) of financial services companies and financial service workforce located in Yeouido38 IFC Seoul IFC Seoul 39
  • 21. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub Finance City, Seoul Finance City, Seoul Introduction of 2009, Introduction of 2009, 2010 overseas IR events 2010 overseas IR eventsSeoul has been visiting advanced financial cities and holding Financial Investment Seminars(IR events) in collaboration with the Finan- At the event, Korean officials also held individual consulting sessions with leaders of important foreign financial companies such ascial Supervisory Service since 2009 to introduce the competitiveness of Seoul’s financial industry and to promote investment of foreign Standard Chartered and ClSA. Standard Chartered and ClSA are actively in the process of expanding their businesses at the same time,investors. In November 2009, following Hong Kong and Singapore, Seoul representatives visited london, united Kingdom, the world strengthening cooperation to make Seoul the most important financial hub in North east Asia. Also ClSA signed an Mou agreementbiggest financial hub, and successfully held a 2010 Financial Hub Seoul Conference event attended by 120 Ceos and executives to positively review a move into IFC Seoul, which is currently being completed on Yeouido.from 50 global financial companies. At the event, the topic of ‘Transition of the financial environment in Seoul’ and successful invest-ment stories by such participants as Peter Sands, Ceo of Standard Chartered Bank; John Walker, Ceo of Macquarie Group; and Completing the building of IFC Seoul, Seoul is engaged in improving the competitiveness of the financial industry and promotingMichael Hellbeck, vice president of Standard Chartered First Bank Korea, received attention and a positive response from the attending actual investment by holding regular foreign investment conferences, benchmarking advanced financial industries and concentrating oninvestors. two-way cooperation with foreign financial companies.40 Introduction of 2009, 2010 overseas IR events Introduction of 2009, 2010 overseas IR events 41
  • 22. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hubuseful Guidelines forForeign InvestorsSeoul is supporting to take your business to new heights42 useful Guidelines for Foreign Investors useful Guidelines for Foreign Investors 43
  • 23. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub useful Guidelines for Foreign Investors Services Provided at Seoul Global Center Consultations in English, Chinese, Japanese, Mongolian, Vietnamese, Tagalog Multilingual Consultations Seoul Global Center / Business Consulting / Visiting Consultations Professional Consultations Labor Consulting, Legal Consulting, Tax Consulting, Real Estate Consulting (Mon, Wed, Fri, 14:00-17:00) Immigration (Extension of Sojourn, Issuance of Certificates), Driver’s License, Comprehensive Administrative Services Consumer Consulting, Tourism Information (English, Japanese), Mobile Phone, Registration Bank Service Other Business Class, Meeting Room Rental MRS(Medical Referral Service) 010-4769-8212, 010-8750-8212Seoul Global Center( was launched in 2008 as a key initiative of the Global Zone Project with its overall mis-sion is to help foreigners enjoy a rewarding and trouble-free life in the city of Seoul.The Seoul Global Center offers services in six languages. For day-to-day living issues, consultations are offered in english, Chinese, andJapanese, and for multicultural issues, Mongolian, Vietnamese, and Tagalog are additionally available. The SGC offers expert services toforeigners, advising them on how to have a comfortable living experience as well as helping them to enjoy the local culture to the fullest.The SGC doesn’t stop at simply providing consultations. It also offers classes on company founding and operation, business expansion,employment, international trade, food service industry and other areas. In addition, professionals in various fields, including lawyers,accountants, realtors and labor attorneys, offer more in-depth, tailored consultations for advice and counsel.For your convenience, there are 7 Global Village Centers located throughout areas of Seoul that have a high concentration of foreigners.each center provides support and assistance in problems faced by foreigners living in the city. It also offers Korean language classes forforeigners and various cultural experience programs. Your life in Seoul begins here! 120+9 one -call service for inquiries on life and tourism in Seoul. The 120 Dasan Call Center provides foreigners, travelling through and liiving in Seoul, with a variety of information services about life, transportation, and tourism services. 120 foreign language service •How to use : Dial (02) 120, Press 9 select 1 for English, 2 for Chinese, 3 for Japanese, 4 for Vietnamese or 5 for Mongolian •Call Center Hours : 09:00~22:00, all year round •Service Areas : Interpretation, Information about everyday life in Seoul, Public transportation, Reservations (for hotels, innostels, concerts, movies, international taxi, ect.44 Seoul Global Center Seoul Global Center 45
  • 24. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub useful Guidelines for Foreign Investors useful Guidelines for Foreign Investors Support for Business Setup: Fn Hub Korea licensing Handbook: Fn Hub KoreaKorea has improved financial systems and practices to create an effective regulatory environment that measures up to the highest licensing handbookexpectations and standards of businesses and investors around the world. Along with national efforts, Seoul is committed to creating abusiness-friendly market environment where domestic and foreign financial companies can compete and thrive together. The licensing Handbook explains licensing procedures and requirements to enable better understanding and easier use by financial companies planning for license application. The book provides comprehensive information on licensing for each business sector includ-Fn Hub Korea ( provides services related to regulatory requirements on business licensing, registration and ing overview, procedure, inspection criteria and completion of application forms.reporting for foreign financial companies active in or planning to establish a presence in Korea. The standard procedure is listed below. The licensing Handbook can be downloaded from the following link:More detailed information on procedure and applications about licensing, registration and reporting can be found at the website below. english: contents of handbook Common BankingProcedure Licensing of a Financial Holding Company Banking Business License Approval for Entry of a Subsidiary into a Financial Holding Company Approval to Conduct Concurrent Business Fn Hub Korea : provides financial system and regulatory information including procedure and requirements for Consultation Approval to Change the Major Shareholder of a Financial Holding Company license approval, authorization, registration and reporting, etc. Approval to Own Shares Exceeding the Prescribed Limit by the Same Person (excluding a Bank Holding Company) Approval to Invest in a Non-financial Subsidiary FSC, FSS : Written application Application Filing Licensing and Registration of an Electronic Financial Business Finance Consumer Service Center : online application via FCSC website ( License to Establish a Credit Information Company Disclosure Application Market Feedback FSC : disclose date of application, the applicant, purpose and details of application and collect market feedback Approval to Conduct Concurrent Business by Credit Information Company Financial Investment FSC, FSS : conduct review, request for supplementary material if necessary Review Application Approval to Own Stocks in Other Companies by Financial Institutions Licensing of Dealing, Brokerage, Collective Investment and Trust Businesses Fn Hub Korea : provide support by arranging meetings with departments in charge of review (Act on the Structural Improvement of the Financial Industry) Registration of Discretionary and Non-Discretionary Investment Advisory Businesses FSC Approval Notification FSC, FSS : grant or reject application and notify the result to the applicant Approval to Change the Major Shareholder of a Financial Investment Service Provider Microfinance Loans Credit Union Licensing Mutual Savings Bank Licensing Insurance Credit Card Business Licensing and Registration Insurance Business Licensing Approval to Change the Large Shareholder of a Credit Card Company Approval for Concurrent Operation of Another Business by Insurance Company Approval for Stock Acquisition by a Mutual Savings Bank Approval to Change theMajor Shareholder of an Insurance Company Credit Rating Business Licensing Approval to Hold Subsidiaries by an Insurance Company46 Support for Business Setup: Fn Hub Korea licensing Handbook: Fn Hub Korea 47
  • 25. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub useful Guidelines for Foreign Investors useful Guidelines for Foreign Investors FAQ: Fn Hub Korea Seoul Selected by Global CompaniesFn Hub Korea offers one-stop services to foreign executives and employees of foreign financial companies already active or starting a Foreign invested companies located in Seoulnew business in Korea. Fn Hub Korea can assist you in visa and immigration affairs and offer information on education, medical ser- Banks (local subsidiary) • Citi • HSBC • SC-first Bankvices, and financial transactions. If you have any questions or concerns, Fn Hub Korea will answer your questions directly or by referringthem to the relevant authorities. Here are some frequently asked questions. • Australia and NewZealand Banking Group Ltd • Bank of America N.A • Bank of China • Bank of Communications • Bank of Mellat • Bank of Tokyo-Mitsubishi UFJ • Barclays Bank PLC • BNP Paribas • China Construction Bank • Credit Agricole Corporate and Investment BankQ) A foreign executive has been newly assigned to our office and needs an entry visa. What are the procedures for visa issuance? • Credit Suisse Bank • DBS Bank Ltd • Deutsche Bank AG • Goldman Sachs International BankA) Submit an application for visa issuance certificate along with the required documents to the nearest immigration office. upon issu- • Hongkong and Shanghai Banking Corporation Ltd • Indian Overseas Bank • Industrial and Commercial Bank of China • ING Bank N.V. • JPMorgan Chase Bankance of a certificate for visa issuance serial number, the executive can apply for a visa at his or her nearest Korean consulate. Banks (branch) • Landes Baden-Wuerttemberg Bank • Macquarie Bank Limited • Metropolitan Bank and Trust Company • Mizuho corporate bank, Ltd. • Morgan Stanley Bank International Limited • National Bank of PakistanQ) What is a financial investor express card, and how can I get one? • Overseas-Chinese Banking Corporation Ltd • Societe Generale • State street Bank and Trust Company • Sumitomo Mitsui Banking Corporation • The Bank of New York Mellon • The Bank of Nova ScotiaA) The financial investor express card was introduced to support the investment activities of foreign financial companies in Korea. A • The Royal Bank of Scotland N.V. • The Yamaguchi Bank, Ltd. • UBS AGcardholder has access to fast-track immigration lanes at the airport. • Union de Banques Arabes et Francaises • United Overseas Bank Ltd • Wachovia BankTo be eligible for a card, an applicant must have a D-7 visa (supervisory intra-company transfer visa), be a branch manager or a deputy • BNP Paribas Securities Korea Co., Ltd • BOS Securities Korea Co., Ltd.branch manager (or a hold a similar position), or work for the Korean branch of a foreign financial company with operating funds of • Citigroup Global Markets Korea Securities Limited • CLSA Securities Korea Ltd Securities (local subsidiary)KRW 7 billion (uSD 6.1 million) or more as of the date of application. To apply, complete and submit an application form to Fn Hub • Deutsche Securities Korea Co., Ltd • Macquarie Securities Korea Limited • Nomura Financial Investment (Korea) Co., Ltd • Standard Chartered Securities Korea LimitedKorea. • Barclays Capital Securities Limited • Credit Suisse Securities(Europe) LtdQ) What visa and immigration services does Fn Hub Korea offer? • Daiwa Securities Capital Markets Co., Ltd • Goldman Sachs (Asia) L.L.CA) For an executive or employee of a foreign financial company seeking to do business in Korea or already in Korea, Fn Hub Korea can Securities (branch) • J.P.Morgan Securities (Far East) Limited • Merrill Lynch International Incorporated • Morgan Stanley Co., Ltd • New Edge Financial Hongkong Ltd • RBS ASIA Limitedhelp with visa and immigration services. We will respond to visa and immigration inquiries, offer support for visa issuance and residence • SG Securities (HK) Ltd • The Hongkong and Shanghai Banking Co., Ltd • UBS Securities Pte Ltdpermission, and forward complaints to the proper government department for resolution. Fn Hub Korea can expedite the visa issuanceprocess and change in residential status by sending a staff member to accompany a foreigner to an immigration office or in other ways at • Allianz Life Insurance Co.,Ltd • AXA General insurance Co. Ltd • Cardif Life Insurance • DAS Legal Expenses Insurance Co., Ltd • ERGO Daum Direct General Insurance Co. Ltdno additional cost. Insurance (local subsidiary) • ING Life Insurance Co.,Ltd • LINA Life Insurance Company of Korea • MetLife Insurance Company of Korea.,Ltd • New York Life Insurance Co.,Ltd • PCA Life Insurance Co.,Ltd • Prudential Life Insurance Co.,Ltd • American International Assurance Korea Co.,Ltd • ACE American Insurance Company • AIG United Guaranty Insurance (Asia) Limited. • American Home Assurance Company • Chubb Group of Insurance Companies, Federal Insurance Company Korea • General Reinsurance AG Insurance (branch) • Genworth Mortgage Insurance Corporation Korea • Hannover Rueckversicherungs AG • Mitsui Sumitomo Insurance Co., Ltd • Munich Reinsurance Company • Reinsurance Group of America • SCOR Reinsurance • Swiss Reinsurance Company • Tokio Marine Nichido Fire Insurance Co, Ltd48 FAQ: Fn Hub Korea Seoul Selected by Global Companies 49
  • 26. SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub useful Guidelines for Foreign Investors useful Guidelines for Foreign Investors Seoul Selected by Global Companies macquarie Seoul Selected by Global Companies credit Suisseabout macquarie about credit SuisseMacquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded Founded in 1856, Credit Suisse is one of the world’s leading financial services providers today advising clients in all aspects of financein 1969, Macquarie employs more than 14,600 people in approximately 70 office locations in 28 countries. In Korea, Macquarie has around the world. As an integrated bank with combined expertise in the areas of private banking, investment banking and asset manage-adopted an entry strategy of establishing joint ventures and alliances with top Korean financial institutions. From a staff of five in 2000, ment, Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients andMacquarie Korea now has over 300 staff, operating 12 diversified businesses, managing three investment funds. Today, Macquarie is the high-net-worth private clients globally. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide.fastest growing foreign financial company in Korea, with a strong emphasis on local expertise. credit Suisse in KoreaReasons for success in Korea Korea, where the bank has been active since 1985, has always been an important market for Credit Suisse in Asia Pacific. Credit SuisseThe commitment of experienced people with technical know-how opting to live in Korea rather than simply visit has paid dividends for is active across the diverse spectrum of investment banking, capital markets, derivatives, investment research, and brokerage services inMacquarie’s business. Macquarie’s success is attributable largely to its deep ties with Korean society and with Korean financial institu- Korea, serving both local and international clients.tions. We are aware that doing business in Korea entails showing some commitment to the country, and that’s why Macquarie embarked As a leading foreign investment bank in terms of scale, stability and deal experiences, Credit Suisse is a major liquidity provider to theon a strategy of localization when we began our business here. Being aware of local sensitivities has ensured that Macquarie’s story in Korean market and a full service bank with licenses in securities, banking, and asset management. It established the Seoul SecuritiesKorea has been one of unqualified success, and provides a good model for foreign financial companies seeking to enter this market. Branch and Bank Branch in 1995 and 1997 respectively, and currently has about 130 professionals committed to serving the Korean market.outlook for the future Credit Suisse has executed more equity transactions than any other foreign investment bank in Korea and proved its leading equityMacquarie plans to build on the strong business foundations it already has in place in Korea. Considering the broad array of businesses raising capacity over the years. Credit Suisse also contributes to Korean corporates and the Korean government by offering debt raisingin which Macquarie is involved in and the long-term nature of our investments, we are well positioned to profit from any general upturn services and credit advisory services. Credit Suisse takes pride in contributing to capital raising by Korean corporates in equity and debtof business activity. Macquarie is adept at adapting swiftly to the changing priorities of the Korean market, which as we also know is one markets.of the fastest-moving in the world. our plan when we invest is to grow the business and grow value. We haven’t come to Korea to investand then leave. Rather, we’re here to build a strong and enduring financial institution that will be a major player in this market for many Reasons for success in Koreayears to come. As one of the top banks providing investment capital into Korea as well as a leading market player in the Korean capital market, Credit Suisse is strongly committed to the Korean market. Korea is one of the key emerging markets for the world’s institutional investors, both in equity and credit, and has the potential to become a major financial center in North Asia with its advanced IT infrastructure, out- standing human resources and business environment, as the Korean government will continue to reform the country’s financial services sector.50 Seoul Selected by Global Companies Macquarie Seoul Selected by Global Companies Credit Suisse 51
  • 27. SEOUL, Welcome to The New Leading Global Financial Hub useful Guidelines for Foreign Investors Seoul, useful links coNNectiNg the FiNaNce FutuReSeoul International Financial Hub Promotion Materials Think Tanks / Forums Seoul Metropolitan Government IFC Seoul http://english.seoul.go.krr Seoul Financial Forum Korea Capital Market Institute Seoul is a prepared city to achieve all your financial goals and dreams. Finance Industry in Seoul Brochure Korea Institute of Finance Korea Institute for International Economic Policy Korea Economic Research Institute Korea Development Institute Today, Seoul is showing rapid growthGovernment/Public Sector Related Organizations and Industry Networks as a financial center of Asia. Seoul Global Center Korea Asset Management Corporation Seoul is on its way to becoming the city FnHub Korea Korea Credit Guarantee Fund Financial Services Commission Korea Deposit Insurance Corporation Financial Supervisory Service Korea Federation of Banks Ministry of Strategy and Finance Korea Exchange Korea Financial Investment Association Korea Exchange chosen and trusted by global investors. The Bank of Korea Korea Insurance Brokers Association Seoul will support to take your business Ministry of Knowledge Economy Korea Insurance Development Institute KOTRA Asset Management Association of Korea Invest Korea Korea Life Insurance Association Korea International Trade Association Fair Trade Commission, Republic of Korea The Credit Finance Association of Korea General Insurance Association of Korea to new heights. Korea Center for International Finance The Korea Chamber of Commerce Industry Korea Securities Finance Corp. G20 Seoul Summit 2010 http://www.seoulsummit.krTrends, Stats Reports Living In Seoul Economic Statistics System (Bank of Korea) Visit Seoul KOSIS (Korean Statistical Information Service) GFCI 8 Report 8 Hi Korea Korea Focus Koreana (Quarterly on Korean art culture) Kosnet (Korean language study on the Internet) Korea Times Korea Herald Incheon International Airport epilogue 5352 useful links
  • 28. investment Promotion divisione-mail | Fax | 82-2-2171-2799 tel | 82-2-2171-2794~2795 Web | http://english.seoul.go.krglobal center (Foreign media Relations/ business-related Services)e-mail | tel | 82-2-1688-0120 Web |