Eun Sung-soo "Accepts Criticism on Corporate Tax, Labor Rigidity, and Regulations as Obstacles to Financial Hub"

Eun Sung-soo, Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, stated on the 16th regarding the progress of promoting South Korea's financial hub, "Foreign financial companies and experts point out that higher corporate and income taxes compared to Hong Kong and Singapore, rigid labor markets, and opaque financial regulations remain obstacles."

Chairman Eun made these remarks at the 43rd Financial Hub Promotion Committee meeting held in the afternoon at the Korea Federation of Banks in Jung-gu, Seoul, attended by related ministries such as the Ministry of Economy and Finance, Seoul Metropolitan Government, Busan Metropolitan City, and financial associations.

He said, "First, I humbly accept the criticism regarding opaque financial regulations," and expressed his position, "We will listen to opinions with an open mind and enhance transparency in financial regulatory supervision."

However, he explained, "From the perspective of macroeconomic management, there are limits to reforming tax and employment systems solely for the financial hub," adding, "This is a similar concern even Japan, which is not a city-state, has."

The Financial Hub Promotion Committee is a deliberative body under the Financial Services Commission established under the 'Act on the Creation and Development of Financial Hubs,' which formulates major policies related to financial hubs, monitors policy implementation, and deliberates on matters requiring coordination among related agencies.

The first basic plan for the financial hub was established in August 2008, and in January of the following year, Seoul and Busan were designated as financial hubs.

Chairman Eun said, "Despite over 20 years of efforts, the path to becoming a Northeast Asian financial hub still appears challenging," and added, "As global financial uncertainties increase and international prudential regulations strengthen, global financial companies are reducing the number of overseas branches to protect profitability."

He further assessed, "While we should not be overly swayed by results, the international evaluation of the domestic financial hub is by no means high."

However, Chairman Eun forecasted, "With increasing asset management demand led by pension funds and continuous growth in overseas investment promoting the globalization of the asset management industry, the recent rise in the global status of Brand K is spreading a positive national image of South Korea. The infrastructure development finance demand in the rapidly growing New Southern and New Northern regions will be an opportunity for new financial industry expansion."

He added, "Our financial hub strategy, when pursued steadily with a long-term perspective rather than a short-term view, can achieve a leap forward beyond the current stage."

On the same day, the Financial Services Commission appointed Park Jin-hoe, President of Citibank Korea, Lee Jang-woo, Professor at Busan National University Graduate School of Finance, and Jung Yoo-shin, Chairman of the Fintech Support Center, as new members of the Financial Hub Promotion Committee.

This content was produced with the assistance of AI translation services.