Does South Korea need a new financial hub

South Korea’s North Jeolla Province (Jeonbuk), has recently rested out a plan to nurture one of its cities, Jeonju, into the county’s third world-wide financial hub.

The chief gist of the plan is to establish a building labelled “Jeonbuk International Financial Center” with a hope to appeal global financial firms and talents to the city.

The province plans to spend about 120 billion South Korean won ($101 million) for the scheme, aiming to start construction as early as 2021. It is presently preparing to launch a viability study.

The province’s desire to have a new financial hub started in 2015 when South Korea’s National Pension Service (NPS) relocated its head office to the city of Jeonju.

The NPS is one of the biggest public pension funds in the domain with about 704 trillion South Korean won ($593 billion) in assets under management, and it is still increasing.

The NPS works narrowly with many global financial companies, particularly asset managers, securities firms and banks, and the province states that it is natural to offer the best environment for the pension fund and its associates by setting up the necessary infrastructure.

The fact that the NPS is a workplace that is extremely sought after by competitive professionals in the financial industry is another cause for the province to want to nurture a new financial hub.

South Korea already elected two cities as such a hubs — Seoul and Busan — with the same resolve of attracting global financial companies and aptitudes.

While Jeonbuk has a hopeful outlook, however, the two others cities have not been able to attain as much as they wanted.