busan international finance center...b i f c busan international finance center 6 busan s t r e n g...

BIFC Busan International Finance Center

June 4, 2015

Whang Sam-Jin, HEAD of BIFCPC

B I F C

Busan International Finance Center

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Busan

S t r e n g t h s

Population (2014)

Area (2012)

GRDP (2012)

Busan 3.5

million ( 6.9 % )

766 km²

( 0.8 % )

USD 59 billion

( 5.0 % )

South-Eastern Area

8.0 million

( 15.7 % )

12,347 km²

( 12.3 % )

USD 215 billion

( 18.0 % )

* Figures in parentheses are percentage of national total

◊ The Greatest Port in Korea

The 2nd City in Korea

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Busan

S t r e n g t h s

◊ Origin & Destination of New Silk Roads in 21C

Now, developed multimodal

transport system (Sea-Air-Land)

Crossroad on North American Route,

European Route

Future, Transcontinental Railways

(TSR, TCR, TMR)

And Arctic Route : sailing period

shortened by 40%

- Busan → Rotterdam : 24 Days

→ 14 Days

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Busan

S t r e n g t h s

◊ World’s 5th Container Port,

Free Economic Zone

Busan New Port with 23 berths (45 berths

by 2020), Busan Port with 22 berths

Busan-Jinhae Free Economic Zone,

global business cluster

Logistics centers in the hinterland

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Busan

S t r e n g t h s

◊ Cluster of Shipbuilding, Mechanical & Automobile Industry

In the world, 1st shipbuilding

(Over 30% of world’s orders)

In Korea,

91% of shipbuilding,

38% of automobile,

36% of mechanical industry

Supply base of parts and materials

in Korea

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B I FC

O v e r v i e w

◊ World’s 5th container port ◊ World’s top 6 shipbuilders nearby ◊ Largest fishery trade market in NEA

Maritime Finance Hub

◊ Headquarters of KRX Located

- Developed derivatives market

Derivatives Hub

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B I FC

O v e r v i e w

◊ Maritime Finance : Market share 0.12%(’09) → 20%(’20)

◊ Derivatives : Recover 1st rank in the world (exchange trading), Rank 3rd in NEA (OTC trading by 2020)

GOALS

VISION ◊ Financial Hub City - Specialized in Maritime Finance & Derivatives

PLANS

◊ Step by Step (NEA Market → Global Market) ◊ Competitive Advantage (Ship finance, Derivatives, Backoffice) ◊ Establish Infrastructure for Financial Hub (Network, Environment) ◊ Enhance Financial Hub Image

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B I FC

O v e r v i e w

◊ Period: 2009~2014 ◊ Facilities: a 63-story Tower, and 3 independent premises

◊ Location: Munhyeon Area ◊ Land Space: 102,352m2

◊ Height: 289m

◊ Tenants (2015.5) 24 financial firms (public and private)

2nd Phase Development Plan

is ready to start now

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B I FC

O v e r v i e w

Division Total Headquarter Regional

Headquarter Branch

Public

Firm

Private

Firm

Bank 7 1 2 4 2 5

Asset

Management 3 1 2 3

Guarantee

/Insurance 6 3 2 1 4 2

Infra Institution,

etc. 7 4 1 2 4 3

Total 23 9 5 9 10 13

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B I FC

O v e r v i e w

◊ Marine Finance Center Consolidated organization of maritime finance parts of three Korean poliy FIs. ( KEXIM, KDB, KSURE ) Total outstanding of maritime finance by the 3 policy FIs as of the end of 2013 is around USD 60 billion, or more than 90% of the Korean total

◊ Korea Shipping Guarantee New insurance company established in December 2014

◊ Ship Management Companies 3 ship management companies relocated into the BIFC

This maritime cluster will lead commercial

banks to increase their maritime finance.

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B I FC

O v e r v i e w

Busan Ranked 24th in GFCI 17 by the Z/Yen Group

▶ In the GFCI 17(March 23, 2015), Busan ranked 24th among the world’s 82 financial centers.

▶ Among others, Busan ranked 3rd following Shanghai and Singapore of the centers, which financial experts consider likely to become more significant in the next few years.

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I n c e n t i v e s

Suppor t ing P lans

Corporation Tax Exemption (new comers except for relocation within Korea)

50% exemption for 2 consecutive years

100 % exemption for 3 years

Financial Support (new comers including relocation within Korea)

◊ Entrance subsidy: 50% of the cost to purchase land or building or rent them (limit : 5 billion won) ※ excluding branches ◊ Employment subsidy: Up to 600,000 won per person (limit : 200 million won, 6 months) ◊ Training subsidy: Up to 600,000 won per person (limit : 200 million won, 6 months) ◊ Business facility installation subsidy : Up to 10% of the cost (limit : 1 billion won)

A d m i n i s t r a t i v e S u p p o r t

I n f r a

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17

Foreign Financial Organizations

Types Targets

Description

Establishment of HQ/ Regional HQ Establishment of Branch

Relocation of HQ/ Regional HQ within Korea

Relocation of Branch within Korea

(Overseas >Busan) (Other place >Busan)

Corporate Tax/ Income Tax

Financial institution with an investment of over 2 billion KRW and more than 10 regular workers

100% tax exemption for 3 years from the first tax year when the first income is made, 50% for the next 2 years

Not applicable

Property Tax

100% tax exemption for 3 years from the first date when tax liability is formed

Not applicable

Acquisition Tax

100% tax exemption for acquired property within 15 years from establishment date of business

Not applicable

Entrance Subsidy

Financial institution which establishes Regional Headquarters managing more than 3 countries, or Headquarters

Up to 50% of the expenses to purchase land or buildings or rent(Up to 5 billion Won per institution)

Not applicable

Up to 50% of the expenses to purchase land or buildings or rent(Up to 5 billion Won per institution)

Not applicable

Employment Subsidy

Financial institution with more than 10 regular workers for the last 3 months

Up to 600,000 Won per new employee after movement to BIFC (for up to 6 months, up to 200 million Won per institution)

Education/ Training Subsidy

Financial institution with training for more than 1 month to recruit more than 10 Korean employees

Up to 600,000 Won for education/training per new employee after movement to BIFC (for up to 6 months, up to 200 million Won per institution)

Business Facility Installation Subsidy

Financial institution with more than 10 regular Korean employees

Up to 10% of the expenses required for installation of business facilities (up to 1 billion Won per institution)

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I n c e n t i v e s

Suppor t ing P lans


◊ Busan Metropolitan City

◊ Busan International Financial City Promotion Center

◊ Financial Supervisory Service etc.

Cooperative working system to assist in approval / permits

◊ Residential, medical and educational services, etc.

And provides personal guidance services

I n f r a

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I n c e n t i v e s

Suppor t ing P lans


I n f r a

Gimhae International Airport

◊ Serve 694 flights a week to 31 cities

in 11 nations

Construction of new int’l airport is under discussion

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I n c e n t i v e s

Suppor t ing P lans


I n f r a

◊ KTX station is located near BIFC

◊ Connected to urban

expressways

◊ Convenient transportation

system : Buses, Subways, Taxes, etc.

Access to Busan International Finance Center...

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I n c e n t i v e s

Suppor t ing P lans


I n f r a

◊ 5 foreign schools in operation : Busan Japanese School, Busan Chinese School, International School of Busan, etc.

◊ 11 special-purpose high schools and 1 self-independent school ◊ 22 universities and Friedrich-Alexander University Busan Campus

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I n c e n t i v e s

Suppor t ing P lans


I n f r a

◊ Within 5km of the BIFC - 6 university hospitals - 1 public hospital and 9 general hospitals

High-quality medical service

◊ Plan for medical facilities - Construct international medical complex center

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busan international finance center...b i f c busan international finance center 6 busan s t r e n g...

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