DO BUSINESS
6 New Growth Engine Industries
As the presence of Northeast Asian countries becomes more pronounced in the international economy, and as economic cooperation among countries within the regional bloc increases, the size of their financial markets expands as well. In response to this trend, the Korean and Seoul Metropolitan Government have come up with ambitious policies to promote the advantages of Seoul as an international financial hub for Northeast Asia.
Seoul excels in the business services related industry with 14.07% of its total labor force employed in 35,165 companies, as of the end of 2005. In addition, in real economic terms, Korea draws high demand in international finance compared to other major Asian countries. This real economy is also the core of Korea's financial industry accounting for:
- 24.72% (8,577 businesses) of the total financial & insurance industry.
- 35.83% (212,151 workers) of the total people engaged in the financial & insurance industry.
- 50.73% (540,908) of the people engaged in the business service industry.
The finance and insurance industries are forming core clusters in the city center and Yeouido, while the business services industry is forming a core cluster in the Gangnam area. Also, the Seoul Metropolitan Government and AIG, the world's second biggest universal financial group, are constructing the Seoul International Financial Center (SIFC) in Yeouido.
Seoul aims to induce foreign investors to form a financial cluster by building private sector-led international financial centers around the Cheonggyecheon restoration project.
Looking at the growth rate of the Korean financial market and the establishment of its international financial centers, Korea will rapidly transform into an international financial hub with world-renowned financial companies, institutions, and experts coming to Korea.
Direct foreign investment in the financial and business services industry (based on declared amount) is increasing steadily with US$ 18.5 million invested in 2003 and US$ 33.9 million invested in 2004. In particular, investment into the financial and insurance industries accounts for a huge portion of this with US$ 16.43 million invested in 2003 and US$ 31.54 million in 2004. This attests to the fact that foreign investors are responding positively to the vision of nurturing Seoul into the financial hub of Northeast Asia.
