financial hub seoul metropolitan government

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SeoulWelcome to the New leading Global Financial Hub

SEOUL, Welcome to The New Leading Global Financial Hub

2 Introduction of Seoul & Korea at a Glance Introduction of Seoul & Korea at a Glance 3


Table of Contents

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 Prologue 3


044 introduction of Seoul & Korea at a glance6 Global City, Seoul 8 Business environment 10 local environment12 History and Culture

1414 economy and Finance 18 Real economy20 Attractiveness of Capital Market24 Current Status of Financial Industry25 Current Status of Financial Industry Market by Sector 28 Current Status of Financial Support Industries Market by Sector

30 4230 Finance city, Seoul34 Yeouido International Financial District37 IFC Seoul40 Introduction of 2009, 2010 overseas IR events

42 useful guidelines for Foreign investors44 Seoul Global Center 46 Support for Business Setup: Fn Hub Korea 47 licensing Handbook: Fn Hub Korea48 FAQ: Fn Hub Korea49 Seoul Selected by Global Companies50 Seoul Selected by Global Companies Macquarie51 Seoul Selected by Global Companies Credit Suisse52 useful links53 epilogue

SEOUL, Welcome to The New Leading Global Financial Hub SEOUL, Welcome to The New Leading Global Financial Hub

PopulationForeign Firms

(in 2010)

SeoulKorea

10,039,000out of 48,875,000in Korea

9,459out of 20,543in Korea

Nunber of foreigners (in 2009)

Language

Average income per household (in 2010)

GDP/GDRP (in 2009)

Ratified FTA

Signed and negotiated FTA

Key industries

Air temperature (in 2009)

Seoul

870,636

About USD 913 billion

Korean, but English is widely spoken

About $38,766

Mean 14.2˚C

Lowest -20.5˚C ~ Highest 38.3˚C

Machinery, Automobiles, Steel, Shipping,Construction, Electronics, Semiconductor,Petrochemical, Telecommunication

255,749

About USD 221 billion

About $35,280

Mean 12.9˚C

Lowest -12.9˚C ~ Highest 34.4˚C

Finance, Tourism, IT, Conventions, etc.

Korea

Korea-Singapre FTA, Korea-ASEAN FTA, Korea-India CEPA

Korea-The U.S. FTA, Korea-EU FTA

*as of February, 2011

Introduction of Seoul & Korea at a Glance 54 Introduction of Seoul & Korea at a Glance

Introduction of Seoul & Korea at a GlanceSeoul is a place to achieve all your financial goals and dreams


6 Global City, Seoul

geographical benefits, a global citySeoul, 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 logistics hub of Northeast Asia whose production accounts for one third of the world’s total output. The city has favorable conditions for single-day business trip as there are 51 megacities with a population of over one million within a 3-4 hour flight.

gdPThe GRDP of Seoul is uSD226,856 million (per capita GRDP, uSD 22,597) which accounts for 24.1% of Korea’s total GDP. The city’s economic growth rate against GDP continues to rise growing from 2.2% in 2008 to 3.2% in 2009 (third quarter).

Population and areaThe area of Seoul is 605km², or 0.6% of Korea’s total area (100,032km²), and consists of 25 autonomous districts (gu). The population of Seoul was 10,039,000 as of the end of 2010, accounting for 20.5% of the total population of Korea (48,875,000). Including Gyeonggi-do, the province surrounding Seoul, the figure soars to 24,336,000, representing about 49.8% of the total population of Korea, creating a highly integrated con-sumer market. While Seoul has a high population density, the city 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.

Global City, Seoul

Introduction of Seoul & Korea at a Glance

Area and Population of Seoul by Ward

Dobong-guArea: 20.7km2

Population: 377,000

Gwangjin-guArea: 17.1km2

Population: 387,000

Gangbuk-guArea: 23.6km2

Population: 346,000

Gangdong-guArea: 24.6km2

Population: 474,000

Nowon-guArea: 35.4km2

Population: 621,000

Songpa-guArea: 33.9km2

Population: 677,000

Seongbuk-guArea: 24.6km2

Population: 481,000

Gangnam-guArea: 39.5km2

Population: 566,000

Jungnang-guArea: 18.5km2

Population: 433,000

Seocho-guArea: 47.0km2

Population: 412,000

Dongdaemun-guArea: 14.2km2

Population: 382,000

Gwanak-guArea: 29.6km2

Population: 552,000

Jongno-guArea: 23.9km2

Population: 178,000

Dongjak-guArea: 16.4km2

Population: 411,000

Eunpyeong-guArea: 29.7km2

Population: 463,000

Yeongdeungpo-guArea: 24.6 km2

Population: 444,000

Seodaemun-guArea: 17.6km2

Population: 341,000

Geumcheon-guArea: 13.0km2

Population: 265,000

Mapo-guArea: 23.9km2

Population: 393,000

Guro-guArea: 20.7km2

Population: 449,000

Jung-guArea: 20.7km2

Population: 139,000

Yangchen-guArea: 17.4km2

Population: 508,000

Yongsan-guArea: 21.8km2

Population: 251,000

Gangseo-guArea: 20.7km2

Population: 584,000Seongdong-guArea: 16.9km2

Population: 323,000

1hrs~2hrs

2hrs~3hrs3hrs~4hrs4hrs~

Seoul

Area 605km2

10,039,000

Northwest of the Republic of Korea

Won (USD 1 = KRW 1,134.8, average exchange rate 2010)

Korean

Presidential System

·Asia’s 4th, and the world’s 15th largest economy

·High growth potential

·�Main industries: shipbuilding (world’s top), semiconductor(world’s 3rd), petrochemicals(world’s 3rd), electronics(world’s 4th),

automobile(world’s 4th), steel(world’s 6th), etc.

·Strong IT infrastructure and cutting-edge information and communication network

·Excellent accessibility to emerging Asian markets

100,032km2

48,875,000

Northeast Asia (between China and Japan)

Population

Location

Language

Currency

System of Government

Economy

Republic of Korea

*Source: Bank of Korea (2008)

1,000 -

800 -

600 -

400 -

200 -

0 -

- 25,000

- 20,000

- 15,000

- 10,000

- 5,000

- 0

1953

1960

1970

1980

1990

2000

2007

2010

(unit : US$ 100million) (unit: US$)

67 1.3

GDP GNI per Capita

Global City, Seoul 7

939.4 22,597

969.9 20,045


Business environment 98 Business environment

trade VolumeKorea has posted consistent increases in trade volume to become the 7th largest trading nation in the world in 2010. Seoul, recording uSD 4,674 billion in exports and posting uSD 417 in trade surplus.

2011, 2012 Prospects for the Korean economy (gdP)The Korea's GDP growth rate recorded 6.1% in 2010. The oeCD forecasts that Korean economy is expected to grow by 4.3% in 2011 and 4.8% in 2012. Korea’s economy is recovering faster than any other oeCD member thanks to an expansionary fiscal policy imple-mented until the third quarter of 2009 as well as excellent export performance. The effects of fiscal spending may gradually be weakened after 2010. However the Korean economy is forecasted to grow 4.3% (4.7% for the fourth quarter) in 2011, thanks to stock accumula-tion, steady export growth, recovery in domestic consumption and a reduced unemployment rate. Korea’s mid-term growth rate between 2011 and 2012 is expected to be 4.5%.*Source: OECD

Foreign direct investment (Fdi), 5-Fold increaseThe Asian financial crisis in the late 1990s led Korea to imple-ment more active policies to attract foreign direct investment. The cumulative amount of inbound foreign direct investment since the financial crisis (i.e. 1998-2008) is five times larger than between 1962, the year when Korea started her industrialization efforts, and 1997. Foreign investment into Korea continues to rise, as does the number of foreign-invested firms.

talented human ResourcesFinancial professionals with in-depth knowledge and leadership skills are essential to compete in sophisticated global financial markets. More than 40% of Seoul residents hold a bachelor’s degree or above, while 54 universities in Seoul confer master’s and doctoral degrees to 35,000 students annually. In addition, there are 75,000 researchers working in 2,466 research institutes (69 affiliated with universities and 2,937 with businesses) in Seoul.

Through the city’s abundant academic and research facilities, Seoul is making diverse efforts to nurture high caliber human resources. Many universities are offering MBA courses in which english is the only language spoken during lectures to develop highly skilled manpower for international exchanges in the areas of management and finance.

Korea and Free trade agreements (Fta)The Korean government continues to push ahead with free trade agreements(FTA) as a main policy to boost market opening and free trade. As a result of active FTA, Korea is able to provide more favorable environments for foreign investors such as a larger common market via protection of investors’ rights, expansion of markets and increased market accessibility.

Business environment


2,274 4,880 8,135 13,034 17,054

1997 2000 2003 2006 May 18, 2009

Number of Foreign-Invested Companies

Effective FTAs

•Korea-Chile FTA Effective on Apr. 1, 2004

•Korea-Singapore FTA Effective on Mar. 2, 2006

•Korea- EFTA FTA Effective on Sep. 1, 2006

•Korea- ASEAN FTA Effective on Jun. 1, 2007 Services effective on May 1, and investments on Sep. 1, 2009

•Korea-India CEPA Effective on Jan. 1, 2010

FTAs awaiting ratification

•Korea-USA FTA Signed on Jun. 30, 2007

•Korea-EU FTA Tentatively signed on Oct. 15, 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1,722 1,504 1,624 1,938 2,538 2,844 3,254 3,714 4,220 3,635 4,674

1,604 1,410 1,521 1,788 2,244 2,612 3,093 3,568 4,353 3,231 4,257

Exports

Imports

Increase of Trade Volume (after customs clearance) *Source: Korea International Trade Association

Treatment of domestic and

foreign companies

Main incentive

Purpose of incentives

Incentive types

Separate support programs for

selected foreign invested companies

-Subsidy (for the establishment of regional

HQs by multinational corporations)

-Tax exemption or reduction

Separate support programs

for all foreign invested companies

Tax exemption or reduction

-Attraction of high technologies

-Development of business support services

-Tax exemption or reduction

-Support for business location

-Cash support

-Subsidy to multinational corporations’ regional HQs

- Tax exemption or reduction (i.e. corporate income tax

and export-related taxation)

-Attraction of multinational corporations’ regional HQs

-Development of high-tech industries and services

same treatment

No separate

incentives

City Hong KongSeoul Beijing

Investment Promotion systems in Major Asian countries *Source : survey by the Korea Business Center of KOTRA (September 2009)

Imports (after customs clearance / Unit : USD billion)

Exports (after customs clearance / Unit : USD billion)

4,500 -

4,000 -

3,500 -

3,000 -

2,500 -

2,000 -

1,500 -

1,000 -

500 -

0 -

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

*Source : FTA, Ministry of foreign Affairs and Trade (www.fta.go.kr)

FTAs under negotiation

•Korea-Canada FTA

•Korea-Mexico FTA

•Korea-GCC FTA

•Korea-Australia FTA

•Korea-New Zealand FTA

•Korea-Peru FTA

•Korea-Colimbia FTA

FTAs under preparation or joint study

•Korea-Japan FTA

•Korea-China FTA

•Korea-China-Japan FTA

•Korea-MERCOSUR FTA

•Korea-Turkey FTA

•Korea-Russia FTA

•Korea-Israel FTA

•Korea-SACU FTA


local environment 1110 local environment

medical Facilities1339

1339 is the number of the emergency Medical Information Center. When 1339 is dialed, english-speaking doctors assist foreigners, providing them with relevant medical information on emergency situations 24 hours a day. To use the service, dial 1339 directly without area code. However, when you call by mobile phone or outside Seoul, dial 02-1339.

Seoul global center

The center’s MRS (Medical Referral Service) operates 24 hours a day to guide foreign residents in Seoul for better medical services. There are 14 medical centers for foreigners in Seoul.(Contact Info: 010-4769-8212, 010-8750-8212)

health insurance for Foreign Nationals

The National Health Insurance Corporation of Korea operates healthcare insurance programs not just for Workplace Policyhold-ers and Community Policyholders but also for foreign residents who hold an insurance policy with it. under the program, foreign policyholders pay only 20% of the medical bill when hospitalized, or 30-50% when they receive outpatient care. There are also pro-grams applicable to international medical insurance policyholders.

educationFacilities

There are currently 21 international schools in Seoul.Seoul (city) is planning to establish two more by 2012. Dulwich College, a prestigious private school in the united Kingdom, was founded in Seoul in September 2010. The Dwight School, a well-known school in Manhattan, New York, will establish a branch school in Seoul in 2011. These efforts will add to an excellent edu-cational environment for the children of foreign families residing in Seoul.

expense

The table below gives a brief overview of educational expenses in Seoul and other major Asian cities, showing that foreign residents in Seoul spend less than those in comparable cities.

local environment

it infrastructureSeoul is regarded worldwide as a leading IT city, with top-notch information and communications infrastructure. According to a study conducted here by oxford university in 2010, Korea ranked number 1 in terms of high-speed Internet quality. And according to the Rutgers Global e-Governance Survey in 2009, Seoul again ranked number 1 in the world in e-government since 2003.

transportationWith a population of over 10 million, Seoul is currently one of the largest megacities in the world.However, the recently completed public transportation system offers citizens a comfortable means of public transport to all corners of the capital. The public transportation system of Seoul has been benchmarked by many countries.

bus

The network of bus services in Seoul is comprised of four groups of buses marked by four different colors representing Branch line, Main line, Circle line and Inter City. Services normally start at 04:00 in the morning and end at 01:00 the following morning. each bus stop has an information display, which provides route and schedule information of buses in real-time, for the convenience of citizens.

Subway

Consisting of 11 lines that form a huge transportation network connecting the entire city and its surrounding areas, Seoul subways are generally regarded as the most convenient, safe and comfortable public transportation means to travel around Korea’s capital area.

air

Seoul has two airports, Gimpo Airport and Incheon International Airport, to link it with other cities in Korea and the world. Gimpo Airport is a hub of Korea’s domestic flights connecting the Korean capital and with its regional centers. Incheon Interna-tional Airport serves international travel-ers departing Seoul to a great choice of destinations around the world. The airport was selected as ‘Top of the World’ in the AeTRA World Airport Satisfaction Survey. Incheon also has garnered the top spot in the ACI Airport Service Quality (ASQ) passenger survey for five consecutive years.


Description

Some foreign investors may choose to have their child educated via homeschooling programs via the website,

Homeschool.com, or the United States Distance Learning association (www.usdla.org)

A foreign investor may have their child enrolled at a Korean school if he or she is a fluent Korean speaker. Korean schools are

generally divided into public and private schools, and elementary education at public schools is offered at no cost.

International school is the most popular choice of the three among foreign investors in Seoul as it offers better quality

school programs than the other two.

Classification

Korean school

Home schooling

International

school

Educational Facilities *Source: Guide for Foreign Residents in Seoul

Educational Spending (Unit: US$)

Kindergarten 5,164 16,140 7,259

6,891

10,585

7,899

16,007

13,284

19,406

20,548

21,816

10,788

10,733

13,592

10,696 11,416

12,684

13,952

15,855

11,213

11,803

12,688

Middle School

High school

School Level Seoul foreign

school SAS 1)

English School of

Foundation

Korea Kent Foreign

School OFS 2)

Yew Chung International

school

Seoul Singapore Hong Kong

Primary school


History and Culture 1312 History and Culture

History and Culture


Seoul, a city with a modern skyline and cutting-edge technology, still retains numerous features of its historic traditions. It is one of a few cities in the world where residents live an urban life while enjoying classic oriental beauty. The people of Seoul and international visitors can savor the diverse cultural characteristics everyday throughout the city.

insadong – a mixture of history and modern timesInsadong, the name of a downtown area in Seoul, has been favored by local residents and foreigners for a long time due to its sustained traditional environment. Insadong encompasses a mix of traditional and modern atmospheres, representing the “culture of the past and the present.” Insadong has been the largest market for antiques and artwork in Korea and now is well known as a historical district.

galleries & museumsSeoul abounds in cultural facilities of all kinds, where people can enjoy exhibitions and stage performances throughout the year. There are 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 art museum that holds six exhibition halls, additional rooms for lectures and seminars and other related facilities.

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 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 PlazaDongdaemun 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-purpose convention hall and a number of exhibition halls that provide a test-bed platform for various corporate design products as well as a venue for international cultural exchanges and cooperation. The plaza’s uniquely and specially designed features vividly showcase the beauty of Seoul.

cheonggyecheonCheonggyecheon, a 5.8 km stream running through downtown Seoul, has been restored to provide a clean and pleasant modern public recreation space. Considered as a major success in urban renewal and beautification, Cheonggyecheon represents the new urban struc-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.


economy & Finance 1514 economy & Finance

Seoul is showing rapid growth as a financial center of Asia

economy & Finance


economy & Finance 1716 economy & Finance

economy & Finance economy & Finance

economy & Finance economy & FinanceThe GRDP of Seoul, the business and financial services center of Korea, accounts for 24% of the country’s GDP (Bank of Korea, 2010). Furthermore, 250 multinational corporations are located in Seoul, including a number of Fortune 500 corporations. And 144 out of 146 foreign financial service institutions currently operating in Korea are located in Seoul. Moreover, 8,854 financial and insurance service providers - 24.8% of the country’s total- are located in Seoul, while 227,935 financial and insurance service workers - 36.8% of the country’s total - work in Seoul.

international FeaturesSeoul’s significance as a production and consumption market has con-tinued to increase with regard to the Northeast Asian economic block (Korea, China and Japan). Some international organizations expect that the scale of the block economy will eventually be comparable to that of the eu and NAFTA by 2020. of the three Northeast Asian countries, Korea’s importance is being heightened as the government continues to implement various measures intended to raise its inter-national profile and improve its institutions by enhancing industrial competitive advantages. Indeed, Korea could leverage the economic growth potential of the Asian region as a great opportunity, and the country should have comparative advantages in exploiting the market potential of the united States, the world’s largest market, once the Korea-uS FTA, the final negotiations for which were completed in December 2010, enters into force.

domestic Features Seoul and the metropolitan region exhibit stronger demand for foreign investment than other regions in Korea. Seoul offers easy 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 continue and more business leaders will stay in Seoul for an extended period. Therefore, Seoul has strong potential for the development of related industries and facilities.

current Status of Seoul Financial industry The Korean government has focused on making Seoul a world-class city with a business environment that is attractive to foreign investors and financial professionals. In this regard, the government proposed the “Roadmap to Create a Financial Center in Northeast Asia” and designated the Yeouido district as Seoul’s official financial cluster to improve the city’s financial competitiveness in January 2009. In late 2009, the domestic stock market achieved a landmark as the FTSe raised the global equity index series of Korea from ‘advance emerging’ 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 financial hubs in Asia by 2015.

Seoul hits a record highin the gFci, ranking 24th, continuing its rapid ascent over the last two years The 8th Global Financial Centres Index (GFCI) was published, once again verifying Seoul as a competitive city among global financial cen-ters worldwide with reliable scores. The GFCI is calculated based on on-line surveys conducted among financiers along with the evaluation results derived by 75 external institutions, including IMD and WeF, in human resources, business environment, market accessibility, infra-structure, general competitiveness and other categories. In the latest survey, Seoul achieved a sharp increase in its score, placing the city 24th in the ranking. Its ranking has been rising at a remarkable rate, outpacing 29 other cities in just 18 months. Confirming the GFCI result, a “Global Financial Centres after Crisis” report announced by Deutsche Bank in August 2010 showed that the competitiveness of Seoul in the international financial business category grew 44%, outshining a number of other famed cities. Seoul was also selected as the most rapidly growing financial city in Asia.

250 Multinational Corporations,

144 foreign Financial Institutions

Production Amount

Nationwide Seoul Nationwide NationwideSeoul Seoul

Number of Entities Number of Workers

Size US$ 34,703 US$ 17,626(50.7%) 35,222 8,651(24.6%) 613,580 199,312(32.5%)

The Operating Fund Structure of Banks (2008)

25 -

35 -

45 -

55 -

07’ 1

st of

half(G

FCI 1)

07’ 2

nd

(GFCI 2

)08

’ 1st

(GFCI 3

)09

’ 1st

(GFCI 5

)10

’ 1st

(GFCI 7

)08

’ 2nd

(GFCI 4

)09

’ 2nd

(GFCI 6

)10

’ 2nd

(GFCI 8

)

Seoul Ranking

4342

51

48

53

35

28

24

Seoul hits a record high in the Global Financial Centres Index (GFCI)


Real economy 1918 Real economy

Real economy Real economy

economy & Finance economy & Finance“The Korean economy has staged an impressive recovery since early 2009 thanks to the authorities’ supportive mac-roeconomic and financial policies, and the normalization in global trade…”

(Source: IMF, Statement at the Conclusion of the 2010 Article IV Consultation Mission to Korea, July 6, 2010)

greatest Potential in 2011 and 2012According to the latest oeCD outlook, the Korean economy is ex-pected to grow 4.3% in 2011 and 4.8% in 2012. These growth rates are higher than the uSA, Japan, and all other oeCD nations.

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 oeCD member countries. Korea is projected to reach at 26.2% level by 2015

Korea’s balance of payments for goods in 2010 reached $41.9 billion 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 2010In the first quarter of 2010, Korea achieved the second highest GDP growth rate among oeCD member countries, following Ireland. The growth rate is more than three times higher than the oeCD average. The GDP of Korea in 2010 reached at uSD 939 billion, ranking 15th in the world.

The second highest GDP growth rate among oeCD member countries

low Government Debt to GDP ratio

*Source: OECD

OECDIN %

Euro Area U.S.A JAPAN KOREA

0.5 0.5 0.4

-3.3-4.1

-2.4-1.2

-5.2

2.71.2

3.2 3.02.0 2.3

6.24.3

0.2

2.81.8

3.2

2008 2009 2010 2011

*Source: OECD

(%)200 -

150 -

100 -

50 -

0 -

Japa

nIta

ly

England

France

U.S.A

Germ

ary

33.8%

Canad

a

Switzer

land

Australi

a

New Zea

land

Korea

*Source: OECD

(%) 3.0 -

2.5 -

2.0 -

1.5 -

1.0 -

0.5 -

0.0 -

Irelan

d

Korea

Canad

aJa

pan

U.S.AOECD UK

France

2.7

2.1

1.5

1.2

0.70.6

0.3

0.1

The Second Highest GDP Growth in 1Q 2010 Greatest Potential in 2010 and 2011 Financial Stability– Low Government Debt to GDP Ratio


Attractiveness of Capital Markets 2120 Attractiveness of Capital Markets

Attractiveness of

Capital Markets

Attractiveness of

Capital Markets

economy & Finance economy & FinanceWithin 12 years since Korea fully opened its financial markets in 1998, the number of foreign investors has steadily increased by over 30,000. In 2009, equity shares held by foreigners accounted for 32.6% of the total stock market and 5.6% of the overall bond market.

indicators of Korea’s Strong capital markets1. Stock market

• In 2010, the market capitalization of the Korean stock market reached uSD 1091 billion, up sharply from uSD 257 billion in 2009.

• In 2010, the total value of share trading volume increased to uSD 1,607 billion from uSD 1,569 billion in 2009.

Amid the recent global financial crisis, the Korean stock markets have shown a particularly strong resilience. The KoSPI(Korea Composite Stock Price Index), the index of all common stocks traded on the Stock Market Division of the Korea exchange, recovered 48.8% in the year from September 2009 to September 2009. It was the fifth strongest performance among the oeCD member countries.

2. bond market

• In 2009, the total value of bonds listed reached uSD 871 billion, increased by new issuance of uSD 216 billion from uSD 655 bil-lion in 2008.

• In 2010, the total value of bond trading recorded uSD 505 billion, up from uSD 402 billion in 2009.

The Korean bond market has been a favorite investment vehicle for international investors since the outbreak of the global financial crisis due to its stable performance. The local bond market, under the belief that the domestic economy will continue its strong growth, is now an attractive proposition to foreign investors. For example, in June 2010, maturing bonds held by foreigners reached a record high of uSD 6 billion.

3. derivatives market

The Korean Derivatives Market opened in May 1996 with the intro-duction of KoSPI 200 futures. Due to its explosive growth, the KRX Derivatives Market surpassed prominent American, european, and other international exchanges to become the world’s number one in terms of volume and contract price of the stock index (KRX’s KoSPI 200) for futures and options.

The Korean Derivatives Market surpassed

American, european, and other international

exchanges

*Source:BIS Quarterly Review, June 2010

(USD Billion) 3,000 -

2,500 -

2,000 -

1,500 -

1,000 -

500-

0 -

Stock Market Size of Bond MarketBond Market

*Source: WFE annual report 2010

Value of Bonds Listed

Total Value of bond Trading

(USD Billion) 1,000.0 -

800.0 -

600.0 -

400.0 -

200.0 -

0.0 -

655

871

336

402

505

2008 2009 2010

2008 2009 2010

Corporate Bond Government Bond

*Source: WFE annual report 2010

Market Capitalization

Total Value of Share Trading

(USD Billion) 1,800.0 -

1,500.0 -

1,200.0 -

900.0 -

600.0 -

300.0-

0.0 -

471

834

1,091

1,4321,569

1,607

Singapo

re

England

Hong K

ong

China

Australi

aKor

ea

World Ranking

2005

Option

Futures

Stock futures

US dollar futures

3 years Korean treasury-Bond futures

KOSPI 200

2007 2009

Rank 1st

Rank 5th

Rank 1st

Rank 11th

Rank 9th

Rank 1st

Rank 8th

Rank 1st

Rank 10th

Rank 11th

Rank 1st

Rank 6th

Rank 7th

Rank 6th

Rank 10th


Attractiveness of Capital Markets 2322 Attractiveness of Capital Markets

Attractiveness of

Capital Markets

Attractiveness of

Capital Markets

economy & Finance economy & FinanceTo facilitate entry into Korea’s capital market and to improve satisfac-tion for both local and foreign investors, the Korean government has paid special attention to expanding the scope of financial businesses, improving regulations, and enhancing the systematic convenience of financial services. In particular, the Financial Services and Capital Markets Act(FSCMA) was enacted in 2009 with the purpose of en-hancing the competitiveness of Korea’s capital market and to establish globally competitive investment banks.

4. Retirement Pension Fund – First Retirement Pension Plan introduced in 2005

Korea launched its first retirement pension plan in December 2005. Since the pension plan was enacted, both the number of registra-tions and its capital volume have increased rapidly, reaching almost 2,500,000 members and uSD 12 billion respectively as of the end of 2009. In the future, the retirement pension fund is expected to bring stability to Korean financial markets and upgrade the capital market to an advanced level.

5. Fund market– boosting Korean capital markets The opening of the Korean fund market was a part of the opening of the Korean capital markets. As more private investors began partici-pating in the fund market, the amount on deposit in their accounts increased rapidly, eventually boosting the Korean Capital Market. The amount deposited in the fund accounts reached uSD 285 billion in 2009.

6. National Pension Fund – Steady, Rapid Rise The national pension fund has expanded in size steadily and exponen-tially, and has now grown as large as other advanced nations. Accord-ing to the National Pension Service(NPS), the amount of national pension fund increases uSD 1.8 billion each month and will exceed uSD 352 billion in 2012. According to NPS, the national pension fund of Korea ranks as the world’s fourth largest after surpassing CalPeRS (California Public employees’ Retirement System) in 2009. Active overseas investments have become a main reason for its profit-ability and exponential growth. Therefore, the NPS plans to boost its overseas investment, particularly with a wide-ranging expansion of foreign equity.

(USD billion)300 -

250 -

200 -

150 -

100 -

2005

2006

2007

2008

2009

2010

162

204

235

187

238

280

(USD million)

2005

.12

2006

.12

2007

.12

2008

.12

2009

.12

2010

.12

16814

2,943

5,250

12,094

25,685

National Pension FundRetirement Pension Fund


Current Status of Financial Industry Market by Sector 2524 Current Status of Financial Industry

Current Status of

Financial Industry

economy & Finance Korean financial industry output, which accounted for 8.2% of the country’s GDP in 2007, is increasing each year, but is still lower than the 10~15% rate of developed countries. Therefore, the growth potential of the Korean financial market is still greater than that of developed countries.

The Korean economy has developed a strong constitution through steady improvements since the foreign currency crisis of 1997, en-abling it to resist instability. It has also demonstrated a rapid rate of recovery from the global financial recession triggered by the subprime mortgage crisis in 2007 – ranking first among oeCD countries and 6th among G20 countries.

Furthermore, Korea demonstrated a lower investment risk than Japan and China in Northeast Asia according to a report published by Credit Suisse based on a comprehensive assessment of foreign invest-ment risk levels in 42 countries, including developed countries, latin America and Africa, reviewing their current account balance against 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.

“A lower investment risk than Japan and China

in Northeast Asia”by Credit Suisse

Country Australia UK USA Korea Japan China

Risk 9 11 13 19 34 42

Foreign Investment Risk of Korea

*Source: Credit Suisse, March 11, 2009

1997 Fiscal Year 2007 Fiscal Year

Securities Companies

Fund Management Firms

Life Insurance Companies

6.7

0.2

1.0

25.5

28.3

21.4

Trends in Market Shares of Foreign Securities,

Fund Management and Life Insurance Firms (Unit:%)

*Source: Financial Service commission

*Source: SIFIC 2009

(Unit:%)8 -

7 -

6 -

0 -

1980

1990

2000

2007

6.09

7.82

7.34

8

Current Status of

Financial Industry

Market by Sector

economy & Financemarket trends by Sectorbanking industry

Bank deposits have achieved steady growth despite low interest rates.Furthermore,the preference for safe assets will continue while the market funding situation displays greater short-term volatility because of the global economic recession and financial market unrest in 2009.

insurance and annuity-Related Service industries

The local insurance industry will encounter fierce competition from other financial service industries in view of the Financial Services and Capital Markets Act, which took effect in 2009, and the professional financial product sales service system, which is currently under review for introduction. Sales competition with banks will intensify further still as local banks actively promote bancassurance and retirement annuity contracts in order to extend their earnings base. Competition between life insurance and non-life insurance companies in the health insurance market will also intensify as the former group actively launches actual loss coverage medical insurance.

2008 2009 2010

1,361,308 1,410,860 1,517,802

Items

Total Liabilities and Shareholders’ Equity

Liabilities

- Certificate of Deposits (CD)

- Bonds sold under Repurchase Agreement

- Won Currency Deposits

- Won currency borrowings

- Foreign Currency Bonds

Deposit Liabilities

Borrowings

- Won Currency Bonds

- Foreign Currency Deposits

- Foreign Currency Borrowings

Other Liabilities

Shareholders’ Equity

1,281,760 1,315,248 1,414,380

693,442 797,890 863,985

567,641 664,948 776,049

34,218 36,017 36,569

91,398 96,628 51,045

411,874 395,944 388,179

41,022 47,272 46,756

67,241 58,552 64,829

27,574 18,555 16,070

201,230 191,517 180,000

53,076 60,104 66,015

176,444 121,414 162,216

79,547 95,613 103,423

Trends in fund Raising by Local Banks (Unit: USD million)

*Source: Financial supervisory Service, financial statistical Information system

Korean financial industry output ratio to GDP


Current Status of Financial Industry Market by Sector 2726 Current Status of Financial Industry Market by Sector

Current Status of

Financial Industry

Market by Sector

Current Status of

Financial Industry

Market by Sector

economy & Finance economy & Finance

Securities Sector

In the first half of 2008, the inflow of funds into the equity fund/other securities markets remained slow because of the global busi-ness recession, fear of inflation resulting from rising interest rates and oil prices, and a decline in willingness to invest in view of a possible broaden financial crisis being triggered by the u.S. financial crisis. Stock prices fell and the trading amount declined as a result of continued net sales by foreign investors due to the global financial crisis. In 2009, however, the local securities market recovered rapidly and the KoSPI index climbed back to 2,000 or higher as the Korean economy bounced back from the worldwide economic crisis.

asset management Service

The Korean asset management sector has maintained consistent growth and its earnings have also increased steadily. The total balance of mutual fund investments received by local asset management firms has continued to grow since the end of March 2006. As of the end of March 2008, it had increased to uSD 307 billion, representing an increase of 38.1% over the same period of the preceding year (and 12.7% over the preceding quarter), and has since recorded more dramatic growth.

credit card Sector

The Korean credit card industry grew rapidly after the government implemented policies designed to promote credit card usage and thereby stimulate the economy by increasing consumer spending following the financial crisis of 1997. Credit card companies secured a solid foundation for growth as consumer spending increased while the employment situation improved amid economic recovery in late 2005.

After the resumption of growth in 2006, the total usage amount of all credit card companies in 2007 increased to uSD 364 billion, 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 89,565,000, an increase of 8.9% over the preceding year.

even more to boost economic activities, Korean government decided lowering the rate of credit card member business fees since Febru-ary 2009. The government lowered the annual card payment service fee burden by 28% by reducing the card payment service fee of 86,000 member businesses belonging to conventional markets from 2.0~3.5% to 2.0~2.2%, based on autonomous action on the part of 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 convenience of paying by credit card have been enhanced.

120,000 -

100,000 -

80,000 -

60,000 -

40,000 -

20,000 -

0 -

1998

1999

2000

2001

2002

2003

2004

2005

2007

2009

2010

2006

2008

114,945

Number of Newly Issued Cards*Source: Asset Management Association of Korea

(Unit: USD million)

400,000 -

350,000 -

300,000 -

250,000 -

200,000 -

150,000 -

100,000 -

50,000 -

0 -

06.1Q

06.2Q

06.3Q

06.4Q

07.1Q

07.2Q

07.3Q

07.4Q

08.1Q

Total Balance of Mutual fund Investments


Current Status of Financial Support Industries Market by Sector 2928 Current Status of Financial Support Industries Market by Sector

Current Status of

Financial Support

Industries Market

by Sector

Current Status of

Financial Support

Industries Market

by Sector

economy & Finance economy & Financecurrent Status of business Services industry Average daily trading volume increased by approximately 15 times from 4,415 contracts in 1999 to 66,067 in 2008, with a marked increase of 20% in 2008 over 2007. The average daily number of open account agreements increased 57 times, from 2,731 contracts in 1999 to 155,835 contracts in 2008, with the sharpest rate of increase occurring since 2005, because of increased trading by institutional and foreign investors. The trading volume and the number of open account agreements in the Korean securities markets have grown significantly since 1999. The equity derivatives market has increased to become No. 1 in Asia, while the bond derivatives market has risen to become the world’s 10th largest.

legal Services

The legal service sector in Korea has grown rapidly in terms of the number of service providers and size of the market (sales amount). As of the end of 2006, the market value of domestic legal services was approximately uSD 2.7 billion. There were 11,341 firms with a combined total of 56,836 employees.

As of December 2010, the Korean Bar Association had 10,263 individual lawyers belonging to 14 regional branch associations, and 3,234 members including 1,471 lawyers belonging to 480 law firms.

accounting and taxation Services

The revenues of accountants nationwide in 2007 were broken down into management consulting worth uSD 684 million (42.6%), accounting audits worth uSD 569 million (35.4%), and tax recon-cilement and other tax services worth uSD 353 million (22.0%). Accounting firms place a greater weight on consulting on taxation, M&A, management and education than on their original service of conducting accounting audits.

Recently, large accounting firms have enhanced the reliability of their services by maintaining membership in, or mutually cooperative relationships with, foreign accounting firms, depending on the scope of their business alliance.Meanwhile, the demand for services related to ethical or law-abiding management will grow due to the progress of globalization, including the drafting of review reports on corporate governance restructuring and internal control systems in connection with the introduction of international accounting standards and transparent accounting systems. As of the end of November 2010, the Korean Institute of Certified Public Accountants had 13,686 members (including 4,292 inactive members).

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-counting and law firms’ encroachment into the tax service market has reached uSD 4,109 million a year.

equity derivatives market : No.1 in Asia

Bond derivatives market : The World’s 10th largest

Annual Trading

Amount (A/B)Turnover rate(B)

Daily Average Open

Account Balance

Total Annual

Trading Volume

Daily Average

Trading Volume(A)

4,415 295,833 2,731 1.48 29,078

6,305 1,538,507 7,251 0.79 152,191

37,900 9,323,430 28,859 1.2 981,176

52,369 12,777,991 67,085 0.71 1,342,955

41,472 10,285,042 51,010 0.74 1,124,052

29,409 7,352,307 73,321 0.37 813,023

45,073 11,223,244 85,311 0.48 1,234,152

41,877 10,343,605 117,428 0.33 1,122,370

55,102 13,555,136 148,226 0.34 1,455,094

66,067 9,513,660 142,315 0.42 1,281,950

1999

2000

2001

2002

2003

2004

2005

2006

2007

08.1~9/19

Daily Average Trading Volume of Futures, Trend in Open Account Agreements and Turnover Rates (Unit: Point, contracts, USD million)

*Source: Cretop

Current Status of Legal services

Number of Workers(persons)

Sales(US$ million)

Number of Firms(entities)

2003 10,240 50,750 1,929

10,634 52,769 2,175

10,858 53,572 2,185

11,341 56,836 2,686

2004

2005

2006

*Source: ‘National Basic Statistics’ Korea National Statistics Office

Current Status of Accounting and Taxation services

Fiscal Year AuditingTax

Reconcilement Management

consulting, etc. Total

409 243 536 1,188

460 268 579 1,307

507 320 645 1,472

569 353 685 1,607

2004

2005

2006

2007

*Source: Korean Institute of Certified Public Accountants (Exclusive of the 400 or so individual accountant offices)


Seoul is on its way to becoming the city chosen and trusted by global investors

Finance City, Seoul 3130 Finance City, Seoul

Finance City, Seoul


Finance City, Seoul 3332 Finance City, Seoul

Finance City, Seoul Finance City, Seoul


distribution of Financial Service industries in SeoulFinancial service companies in Seoul are concentrated in Gwanghwamun, Gangnam and Yeouido. However, the Seoul Metropolitan Government plans to develop the International Financial District and IFC Seoul in Yeouido and to locate more business service func-tions there.

Financial Strengths of SeoulSeoul has a sufficiently large market and steady potential demand for financial services. It represents about 50% of Korea’s entire financial services, as the majority of the nation’s financial service experts and key institutions are concentrated in Seoul, including 61 securities firms (including the Korean head offices of 14 foreign securities firms), 59 asset management firms, 48 insurance companies, a number of key asset management firms, the Bank of Korea, and the Financial Services Commission.

active Support from central and local governmentsBoth the Korean and Seoul Metropolitan governments have steadily endeavored to ac-commodate foreign financial service providers by improving the city’s financial service in-frastructure, including its institutional systems. Consequently, Korea has eased regulations related to financial services faster than China and Japan. In particular, Korea’s financial services market has developed more rapidly, as it was opened to foreign capital after the foreign currency crisis of 1997 and the enactment of the Financial Services and Capital Markets Act in 2009. The central government has promoted diverse policies aimed at growing the financial services market, including extensive mitigation of capital market regulations as provided under the Financial Services and Capital Markets Act, interna-tionalization of the Korean won (promotion of the wide use of the Korean won), and steady efforts to liberalize the foreign exchange market. Furthermore, the government has pushed ahead with policies designed to develop a financial service hub, including enact-ment of the Act on the Formation and Development of Financial Hub in 2007, following its implementation of the Strategy for Developing a Northeast Asian Financial Service Hub in 2003, and its designation of Yeouido as an International Financial District.

Dobong-gu

Gwangjin-gu

Gangbuk-gu

Gangdong-gu

Nowon-gu

Songpa-gu

Seongbuk-gu

Gangnam-gu

Jungnang-gu

Seocho-gu

Dongdaemun-gu

Gwanak-gu

Jongno-gu

Dongjak-gu

Eunpyeong-gu

6.2%

7.9%

7.1%

12.24%

12%

Yeongdeungpo-gu

Seodaemun-gu

Geumcheon-gu

Mapo-gu

Guro-gu

Jung-gu

Yangchen-gu

Yongsan-gu

Gangseo-gu

Seongdong-gu

0-10

10-30

30-60

60-150

150-250

250-500


Yeouido International Financial District 3534 Yeouido International Financial District

Yeouido International

Financial District


Financial District


Wall Street of Korea, Yeouido plays a central role in shaping Seoul into a financial hub of Asia. A convenient working and residential en-vironment offered by ‘a city within a city’ will allow multinational financial institutions and talented professionals to demonstrate their full potential and gain a competitive edge.

Features of Financial Services business in YeouidoFinancial and insurance service companies and the related workforce in Yeouido, Yeongdeungpo-gu, account for 8% of all financial and insurance companies and 15.6% of the entire financial and insurance workforce respectively in Seoul. These are the second highest figures next to those for Jung-gu, but reflect a higher average ratio of employees per business in Yeouido.

Formation of Korea’s best infrastructure93 out of 291 financial institutions, 42 out of 68 asset management firms and 8 out of 11 futures companies have their headquarters in Yeouido. It already constitutes Korea’s best financial district with a concentration of related financial service institutions.

Number of Financial Service Providers and Workers Located in Seoul

Downtown

Gangnam

Other

Total

Total

9 37 9 12 17 15 1 1 2 16 7 8 134

- 1 5 - 6 5 - - 6 1 9 14 47

1 - 1 - 6 2 - 1 1 - 3 2 17

12 38 46 13 30 23 9 2 43 25 20 30 291

Banks(50) Futures(11)Securities(59)Asset

Management(68)Insurance(53)Accounting /

Consulting / Law(50)

Korean Foreign Korean Foreign Korean Foreign Korean Foreign Korean Foreign Korean Foreign

*Source : Seoul City Government, as of December 2008

Yeouido 2 - 31 1 1 1 8 - 34 8 1 6 93

general StatusThe Yeouido International Financial District, designated by the central government and controlled by the city government, has the following advantages:

location

• Key transportation route connecting the south and north parts of Seoul along the Hangang River

• Hub of financial, political and press services• Commercial buildings account for 61.9% of all buildings in the

area

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 the workforce are located in Yeouido.

Yeouido Yeongdeungpo-gu


IFC Seoul 3736 Yeouido International Financial District


Financial District IFC Seoul


International Finance Centre Seoul (IFC Seoul), one of the core features of Seoul City’s financial hub project, provides benefits and reflects the progress of the project to inves-tors. IFC Seoul, located in the heart of the Yeouido district, is an innovative mixed-use development incorporating offices, hotels, retail, and leisure facilities.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 about 200 occupants per floor, depending on usage requirements. In addition to high space ef-ficiency and floor-to-ceiling windows, one IFC offers exceptional views of Yeouido Park and the Hangang River.

IFC Seoul, designed by world-renowned Arquitectonica, is composed of four cutting-edge style buildings – one, Two, Three IFC towers and a 5-star hotel - scheduled for 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, and an art center.

“My inspiration for IFC Seoul is based on oriental landscape paintings featuring precipitous mountains. The four vertical towers are designed as if they were monuments shaped naturally through a unique pattern of ero-sions. The idea behind it is to represent a modern workplace that pursues efficiency and productivity, yet maintains sensuous expressionism.”(Bernardo Fort-Brescia, Principal, Arquitectonica)

multiple Related Facilities and institutions At present, Yeouido is the home of financial regulatory agencies such as the Financial Services Commission and the Financial Supervisory Service as well as the Korea Stock ex-change. The location of these financial watchdogs in the area offers such benefits as easy sharing of information and communication in operating a financial services business.

institutions offering Financial ServicesA total of 34 securities companies are operating in Yeouido, including Daiwa Securities SMBC, Mirae Asset Securities, Meritz Securities and foreign securities companies. In addition, 44 asset management firms have a presence in Yeouido, including Allianz Asset Management, Franklin Templeton Investment and Trust Management, and Truston Asset Management. Many futures companies are also located in Yeouido, including Samsung Futures, NH Investment and Futures, KB Futures, KR Futures and Hyundai Futures.

Financial Research institutesThe Korea Capital Market Institute and the Korea economic Research Institute are located in Yeouido.

Since Yeouido was designated as an international financial cluster at the beginning of 2009, the Korean government has afforded all kinds of benefits to the financial sector, including tax breaks and easing of regulations to nurture Yeouido into an international fi-nancial district. Seoul also offers a wide range of supporting infrastructure in the Yeouido area to grow the city into a world-class financial center. As its core element, IFC Seoul is ready to deliver on this bold financial vision.


38 IFC Seoul IFC Seoul 39

IFC Seoul IFC Seoul


IFC Seoul so far has reached a number of tenancy agreements with major global financial institutions. For example, ING Investment Management, ING Real estate Investment Management and Daiwa Securities recently signed long-term leases, and Deloitte Korea, the global accounting and consulting firm, agreed to occupy nine floors of IFC Seoul for 16 years starting in 2011. Recently, IFC Seoul also signed an agreement with Conrad Hotels.

an accessible efficient transportation Network The Seoul Metropolitan Government plans to allocate KRW 124.7 billion (uSD 111.6 million) to eliminate chronically congested areas and improve traffic conditions around ramps and intersections, creating a smoother east-West flow around Yeouido Park. Also under consideration are additional ramps connecting the olympic Highway and Yeouido, as well as monorail services between Yongsan and Yeouido.

easy and convenient Public transportation Yeouido Station, serviced by Seoul Metropolitan Subway line 5 and Seoul Metro line 9, is directly connected to IFC Seoul through an underground passage, making travel easy and convenient. on line 5, it takes 15 minutes from Gwanghwamun Station. on line 9, the station is 11 minutes from Gangnam express Bus Terminal, 17 minutes from Gimpo International Airport and 43 minutes from Incheon International Airport.

Yeouido transfer centre and taxi Services located next to IFC Seoul, the Yeouido Transfer Centre will make it easier than ever to use local buses and taxi services.

Purposes

Location and Project Owner

Development Method

Project Budget

Construction Period

Lease Period

Occupants

Construction Progress

Target Sectors and Business

Rental Agreements

Future Plans

IFC Composition

• Construction of Seoul Financial business cluster center and flagship facility

• Improvement of infrastructure to attract global financial institutions and multinational enterprises

• Construction of an efficient industrial network comprising financial services, legal and accounting services

• Deloitte, a global accounting and management consulting firm

• Youngpoong, Korea’s largest bookstore and culture space, and CJ CGV, the operator of Korea’s largest multiplex cinema chain

• The Hilton and Conrad Hotels

• 46%, on schedule, as of November 2010

• Early construction and operation are scheduled for Office Tower I, Hotel and Retail Mall

• ING Asset Management, ING Real Estate Asset Management (‘10.05),

• Daiwa Securities (‘10.09)

• Global financial Institutions and multinational enterprises

• 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

_ 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 Yeouido

• Project Name: Seoul International Finance Centre (International Financial Centre Seoul)

• Project Owner: Seoul Metropolitan Government, AIG Global Real Estate Development

• Location: 23 and 23-1 Yeouido-dong, Yeongdeungpo-gu (Former site of Small and Medium Business Exhibition Center)

• Building Area: 505,694m2, Site Area:33,058m2

Seoul Metropolitan Government (land Lease), AIG (development, construction and operation)

USD 1.33billion (Capital: USD 400million, Financing: USD 934 million)

Donation after 99 years (50+49 years) (BOT contract)

2006~2012

Height(m)

171

279

194

178 Early construction

and operation-

-

Total area(m2)

65,015

132,586

72,606

76,786

73,584

86,696

Completion Date

December 2012

December 2012

March 2011

June 2011

March 2011

March 2011

Remarks

Office Tower II (29 stories)

Office Tower II (55 stories)

Office Tower I (32 stories)

Hotel (38 stories)

Shopping Mall(Underground 3 stories)

Underground Parking (4~7 stories)

Details of IFC Seoul


Introduction of 2009, 2010 overseas IR events 4140 Introduction of 2009, 2010 overseas IR events

Introduction of 2009,

2010 overseas IR events

Introduction of 2009,

2010 overseas IR events


Seoul has been visiting advanced financial cities and holding Financial Investment Seminars(IR events) in collaboration with the Finan-cial Supervisory Service since 2009 to introduce the competitiveness of Seoul’s financial industry and to promote investment of foreign investors. In November 2009, following Hong Kong and Singapore, Seoul representatives visited london, united Kingdom, the world biggest financial hub, and successfully held a <2010 Financial Hub Seoul Conference> event attended by 120 Ceos and executives 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 Michael Hellbeck, vice president of Standard Chartered First Bank Korea, received attention and a positive response from the attending investors.

At the event, Korean officials also held individual consulting sessions with leaders of important foreign financial companies such as Standard Chartered and ClSA. Standard Chartered and ClSA are actively in the process of expanding their businesses at the same time, strengthening cooperation to make Seoul the most important financial hub in North east Asia. Also ClSA signed an Mou agreement to positively review a move into IFC Seoul, which is currently being completed on Yeouido.

Completing the building of IFC Seoul, Seoul is engaged in improving the competitiveness of the financial industry and promoting actual investment by holding regular foreign investment conferences, benchmarking advanced financial industries and concentrating on two-way cooperation with foreign financial companies.


useful Guidelines for Foreign InvestorsSeoul is supporting to take your business to new heights

useful Guidelines for Foreign Investors 4342 useful Guidelines for Foreign Investors

Seoul Global Center

useful Guidelines for Foreign Investors

Seoul Global Center(http://global.seoul.go.kr) 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, and Japanese, and for multicultural issues, Mongolian, Vietnamese, and Tagalog are additionally available. The SGC offers expert services to foreigners, 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 for foreigners and various cultural experience programs.

44 Seoul Global Center

SEOUL, Welcome to The New Leading Global Financial HubSEOUL, Welcome to The New Leading Global Financial Hub

Your life in Seoul begins here!

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.

120+9

Seoul Global Center 45

Multilingual Consultations

Professional Consultations(Mon, Wed, Fri, 14:00-17:00)

Other

Comprehensive Administrative Services

MRS(Medical Referral Service)

Labor Consulting, Legal Consulting, Tax Consulting, Real Estate Consulting

Immigration (Extension of Sojourn, Issuance of Certificates), Driver’s License,

Consumer Consulting, Tourism Information (English, Japanese), Mobile Phone, Registration Bank Service

Business Class, Meeting Room Rental

010-4769-8212, 010-8750-8212

Consultations in English, Chinese, Japanese, Mongolian, Vietnamese, Tagalog

/ Business Consulting / Visiting Consultations

Services Provided at Seoul Global Center

licensing Handbook: Fn Hub Korea 4746 Support for Business Setup: Fn Hub Korea


licensing Handbook: Fn Hub Korea

licensing handbook

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-ing overview, procedure, inspection criteria and completion of application forms.

The licensing Handbook can be downloaded from the following link: english: http://www.fnhubkorea.kr/fhk_eng/info/handbook.jsp

contents of handbook

Common

Licensing of a Financial Holding Company

Approval for Entry of a Subsidiary into a Financial Holding Company

Approval to Change the Major Shareholder of a Financial Holding Company(excluding a Bank Holding Company)

Approval to Own Stocks in Other Companies by Financial Institutions (Act on the Structural Improvement of the Financial Industry)

Licensing and Registration of an Electronic Financial Business

License to Establish a Credit Information Company

Approval to Conduct Concurrent Business by Credit Information Company

Banking

Banking Business License

Approval to Conduct Concurrent Business

Approval to Own Shares Exceeding the Prescribed Limit by the Same Person

Approval to Invest in a Non-financial Subsidiary

Financial Investment

Licensing of Dealing, Brokerage, Collective Investment and Trust Businesses

Registration of Discretionary and Non-Discretionary Investment Advisory Businesses

Approval to Change the Major Shareholder of a Financial Investment Service Provider

Microfinance Loans

Credit Union Licensing

Approval to Change the Large Shareholder of a Credit Card Company

Mutual Savings Bank Licensing

Approval for Stock Acquisition by a Mutual Savings Bank

Credit Card Business Licensing and Registration

Credit Rating Business Licensing

Insurance Business Licensing

Approval for Concurrent Operation of Another Business by Insurance Company

Approval to Change theMajor Shareholder of an Insurance Company

Approval to Hold Subsidiaries by an Insurance Company

Insurance


Support for Business Setup: Fn Hub Korea


Korea has improved financial systems and practices to create an effective regulatory environment that measures up to the highest expectations and standards of businesses and investors around the world. Along with national efforts, Seoul is committed to creating a business-friendly market environment where domestic and foreign financial companies can compete and thrive together.

Fn Hub Korea (http://www.fnhubkorea.kr) provides services related to regulatory requirements on business licensing, registration and reporting for foreign financial companies active in or planning to establish a presence in Korea. The standard procedure is listed below.

More detailed information on procedure and applications about licensing, registration and reporting can be found at the website below.Korean: http://www.fnhubkorea.kr/fhk_kor/korea/korea.jspenglish: http://www.fnhubkorea.kr/fhk_eng/korea/korea.jsp

Consultation

Application Filing

Review Application

Disclosure Application & Market Feedback

FSC Approval & Notification

FSC, FSS : Written application

Finance Consumer Service Center : online application via FCSC website (www.fcsc.kr)

FSC : disclose date of application, the applicant, purpose and details of application and collect market feedback

FSC, FSS : conduct review, request for supplementary material if necessary

Fn Hub Korea : provide support by arranging meetings with departments in charge of review

FSC, FSS : grant or reject application and notify the result to the applicant

Fn Hub Korea : provides financial system and regulatory information including procedure and requirements for

license approval, authorization, registration and reporting, etc.

Procedure

Seoul Selected by Global Companies 4948 FAQ: Fn Hub Korea


Seoul Selected by Global Companies

Banks (local subsidiary)

Banks (branch)

Securities (local subsidiary)

Securities (branch)

Insurance (local subsidiary)

Insurance (branch)

• Citi • HSBC • SC-first Bank

• 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 Bank

• Credit Suisse Bank • DBS Bank Ltd • Deutsche Bank AG • Goldman Sachs International Bank

• Hongkong and Shanghai Banking Corporation Ltd • Indian Overseas Bank

• Industrial and Commercial Bank of China • ING Bank N.V. • JPMorgan Chase Bank

• Landes Baden-Wuerttemberg Bank • Macquarie Bank Limited • Metropolitan Bank and Trust Company

• Mizuho corporate bank, Ltd. • Morgan Stanley Bank International Limited • National Bank of Pakistan

• 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 Scotia

• The Royal Bank of Scotland N.V. • The Yamaguchi Bank, Ltd. • UBS AG

• Union de Banques Arabes et Francaises • United Overseas Bank Ltd • Wachovia Bank

• Barclays Capital Securities Limited • Credit Suisse Securities(Europe) Ltd

• Daiwa Securities Capital Markets Co., Ltd • Goldman Sachs (Asia) L.L.C

• J.P.Morgan Securities (Far East) Limited • Merrill Lynch International Incorporated

• Morgan Stanley Co., Ltd • New Edge Financial Hongkong Ltd • RBS ASIA Limited

• SG Securities (HK) Ltd • The Hongkong and Shanghai Banking Co., Ltd • UBS Securities Pte 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

• 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, Ltd

• 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. Ltd

• 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

• BNP Paribas Securities Korea Co., Ltd • BOS Securities Korea Co., Ltd.

• Citigroup Global Markets Korea Securities Limited • CLSA Securities Korea Ltd

• Deutsche Securities Korea Co., Ltd • Macquarie Securities Korea Limited

• Nomura Financial Investment (Korea) Co., Ltd • Standard Chartered Securities Korea Limited

Foreign invested companies located in Seoul


FAQ: Fn Hub Korea

Fn Hub Korea offers one-stop services to foreign executives and employees of foreign financial companies already active or starting a new business in Korea. Fn Hub Korea can assist you in visa and immigration affairs and offer information on education, medical ser-vices, and financial transactions. If you have any questions or concerns, Fn Hub Korea will answer your questions directly or by referring them to the relevant authorities. Here are some frequently asked questions.

Q) A foreign executive has been newly assigned to our office and needs an entry visa. What are the procedures for visa issuance?A) Submit an application for visa issuance certificate along with the required documents to the nearest immigration office. upon issu-ance of a certificate for visa issuance serial number, the executive can apply for a visa at his or her nearest Korean consulate.

Q) What is a financial investor express card, and how can I get one?A) The financial investor express card was introduced to support the investment activities of foreign financial companies in Korea. A cardholder has access to fast-track immigration lanes at the airport.To 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 branch manager (or a hold a similar position), or work for the Korean branch of a foreign financial company with operating funds of 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 Korea.

Q) What visa and immigration services does Fn Hub Korea offer?A) For an executive or employee of a foreign financial company seeking to do business in Korea or already in Korea, Fn Hub Korea can help with visa and immigration services. We will respond to visa and immigration inquiries, offer support for visa issuance and residence permission, and forward complaints to the proper government department for resolution. Fn Hub Korea can expedite the visa issuance process and change in residential status by sending a staff member to accompany a foreigner to an immigration office or in other ways at no additional cost.


50 Seoul Selected by Global Companies Macquarie


Seoul Selected by Global Companies credit Suisse

about credit Suisse Founded in 1856, Credit Suisse is one of the world’s leading financial services providers today advising clients in all aspects of finance around the world. As an integrated bank with combined expertise in the areas of private banking, investment banking and asset manage-ment, Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide.

credit Suisse in Korea Korea, where the bank has been active since 1985, has always been an important market for Credit Suisse in Asia Pacific. Credit Suisse is active across the diverse spectrum of investment banking, capital markets, derivatives, investment research, and brokerage services in Korea, serving both local and international clients. As a leading foreign investment bank in terms of scale, stability and deal experiences, Credit Suisse is a major liquidity provider to the Korean market and a full service bank with licenses in securities, banking, and asset management. It established the Seoul Securities Branch and Bank Branch in 1995 and 1997 respectively, and currently has about 130 professionals committed to serving the Korean market. Credit Suisse has executed more equity transactions than any other foreign investment bank in Korea and proved its leading equity raising capacity over the years. Credit Suisse also contributes to Korean corporates and the Korean government by offering debt raising services and credit advisory services. Credit Suisse takes pride in contributing to capital raising by Korean corporates in equity and debt markets.

Reasons for success in Korea 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.



Seoul Selected by Global Companies Credit Suisse 51

Seoul Selected by Global Companies macquarie

about macquarie Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 14,600 people in approximately 70 office locations in 28 countries. In Korea, Macquarie has adopted an entry strategy of establishing joint ventures and alliances with top Korean financial institutions. From a staff of five in 2000, Macquarie Korea now has over 300 staff, operating 12 diversified businesses, managing three investment funds. Today, Macquarie is the fastest growing foreign financial company in Korea, with a strong emphasis on local expertise.

Reasons for success in Korea The commitment of experienced people with technical know-how opting to live in Korea rather than simply visit has paid dividends for Macquarie’s business. Macquarie’s success is attributable largely to its deep ties with Korean society and with Korean financial institu-tions. We are aware that doing business in Korea entails showing some commitment to the country, and that’s why Macquarie embarked on a strategy of localization when we began our business here. Being aware of local sensitivities has ensured that Macquarie’s story in Korea has been one of unqualified success, and provides a good model for foreign financial companies seeking to enter this market.

outlook for the future Macquarie plans to build on the strong business foundations it already has in place in Korea. Considering the broad array of businesses in which Macquarie is involved in and the long-term nature of our investments, we are well positioned to profit from any general upturn of business activity. Macquarie is adept at adapting swiftly to the changing priorities of the Korean market, which as we also know is one 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 invest and 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 years to come.


useful links

Government/Public Sector

Seoul Global Center

Financial Supervisory Service

The Bank of Korea

Invest Korea

Korea Center for International Finance

FnHub Korea

Ministry of Strategy and Finance

Ministry of Knowledge Economy

Korea International Trade Association

The Korea Chamber of Commerce &Industry

Financial Services Commission

Korea Exchange

KOTRA

Fair Trade Commission, Republic of Korea

Korea Securities Finance Corp.

G20 Seoul Summit 2010

http://global.seoul.go.kr

http://english.fss.or.kr

http://www.bok.or.kr

http://www.investkorea.org

http://www.kcifny.org

http://www.fnhubkorea.kr

http://english.mosf.go.kr

http://www.mke.go.kr

http://global.kita.net

http://english.korcham.net

http://www.fsc.go.kr

http://eng.krx.co.kr

http://english.kotra.or.kr

http://eng.ftc.go.kr

http://www.ksfc.co.kr

http://www.seoulsummit.kr

Related Organizations and Industry Networks

Korea Asset Management Corporation

Korea Federation of Banks

Korea Insurance Brokers Association

Korea Life Insurance Association

Korea Credit Guarantee Fund

Korea Financial Investment Association

Korea Insurance Development Institute

The Credit Finance Association of Korea

Korea Deposit Insurance Corporation

Korea Exchange

Asset Management Association of Korea

General Insurance Association of Korea

http://www.kamco.or.kr

http://www.kfb.or.kr

http://www.ikiba.or.kr

http://www.klia.or.kr

http://www.kodit.co.kr

http://www.ksda.or.kr

http://www.kidi.co.kr

http://www.knfa.or.kr

https://www.kdic.or.kr

http://www.krx.co.kr

http://www.amak.or.kr

http://www.knia.or.kr

Trends, Stats& Reports

Economic Statistics System (Bank of Korea)

KOSIS (Korean Statistical Information Service)

GFCI 8 Report 8

http://ecos.bok.or.kr

http://www.kosis.kr

http://www.zyen.com

Living In Seoul

Visit Seoul

Korea Focus

Korea Times

Korea.net

Koreana (Quarterly on Korean art & culture)

Korea Herald

Hi Korea

Kosnet (Korean language study on the Internet)

Incheon International Airport

http://english.visitseoul.net/

http://www.koreafocus.or.kr

http://www.studyinkorea.go.kr/

http://www.korea.net/

http://www.koreana.or.kr/

http://www.koreaherald.com/

http://www.hikorea.go.kr/

http://www.kosnet.go.kr/

http://www.airport.kr

Seoul International Financial Hub Promotion Materials

Seoul Metropolitan Government

IFC Seoul

Finance Industry in Seoul Brochure

http://english.seoul.go.krr

http://www.ifcseoul.com

http://dmc.seoul.go.kr

Think Tanks / Forums

Seoul Financial Forum

Korea Institute for International Economic Policy

Korea Capital Market Institute

Korea Economic Research Institute

Korea Institute of Finance

Korea Development Institute

http://www.sff.or.kr

http://www.kiep.go.kr

http://www.ksri.org

http://www.keri.org

http://www.kif.re.kr

http://www.kdi.re.kr


52 useful links


Seoul is a prepared city to achieve all your financial goals and dreams.

Today, Seoul is showing rapid growth as a financial center of Asia.

Seoul is on its way to becoming the city chosen and trusted by global investors.

Seoul will support to take your business to new heights.

Seoul, coNNectiNg the FiNaNce FutuRe

epilogue 53

financial hub seoul metropolitan government

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