Do you know “Gangnam Style”? Or Have you ever heard about “Super junior” or “Girl’s Generation”? The “K-pop”, also known as “the Korean Wave”, has been an incredible hit and is spreading throughout the world. The “K-pop” not only has a power in the part of music, but also plays a role as introduction of Korea itself. Similarly, there is another “the Korean Wave” in the part of the finance. So, today I want to tell you about “the Korean Wave in finance”.
In the big picture, the developing countries in Asia have much interest in Korea’s economic development experience and infrastructure in financial industry such as the Securities Trading System, the Depositor Protection system. Concretely, Korea has experienced rapid economic growth and also overcome economic crisis in 1997 and 2008 wisely. Based on these experiences, the FSS has a plan to expanding “the Korean Wave” establishing bridgehead in parts of Asia in the part of the finance.
This “the Korean Wave” is composed of three parts. That is, the export of finance infrastructure, the reinforcement of overseas financial cooperation, and support of overseas expansion. Then, let’s learn more specific details about each part.
First of all, the FSS will carry forward the export of finance infrastructure. Unlike the past, the center of the business is moving from the manufacturing industry to the service industry. In this respect, the export of finance infrastructure can be a next-generation growth power creating high value added and job. The Korea Exchange gave technical assistance in building new stock market in Cambodia and established joint stock exchange. Furthermore, through the Foreign Financial Cooperation Committee, the FSS try to support the export systematically and effectively. In detail, the FSS will use KSP (Knowledge Sharing Program) experiences and network of each financial organization to maximize the effect of the export of finance infrastructure.
Secondly, the reinforcement of overseas financial cooperation will be prosecuted. Through the financial cooperation MOU and the financial KSP business, the FSS will strengthen the network for the strategic financial cooperation with financial authorities in developing countries. For now, Korea has concluded 35 MOU with 38 organizations in 22 countries such as Thailand, Indonesia and Turkey. These kinds of financial cooperation will be a foundation of future global partnership and also be the groundwork for the overseas expansion of financial corporations.
Lastly, the FSS will support finance companies to extend their business abroad. In microscopic aspect, two effort discussed above will be a foundation for this. Plus, the authorities will improve the system for the vitalization of overseas expansion. In a material way, the FSS will ease the buyout process of overseas affiliated company from prior approval to the ex post facto report. In addition, it will make support plan for the asset management companies’ overseas expansion. Especially, the FSS said that it will discuss about Asia Region Funds Passport (ARFP) and through this, we can release and sell fund without approval from financial authorities among its members.
There are so many policies and efforts for the new-year 2013 and I am sure that this ‘Korean Wave’ in the financial parts will contribute to Korea’s economy and be the groundwork at the way to go to the developed countries. In a nutshell, through this ‘Korean Wave’ program, I wish creative economy to flourish.
By Han Soyeon (firstname.lastname@example.org)