Emerging Economic Hub of Seoul

Emerging Economic Hub of Seoul

Seoul city may not share the characteristics of a competitive financial centre in the manner of Singapore or Hong Kong. Regardless, it's a fast-growing financial centre with its fairs share of ups and downs. Among Seoul's strengths are militant unions and labour regulations. However, the South Korean government is trying to attract foreign firms, taking advantage of the country's capital investments and opportunities. As a rule, many companies typically consider investing in markets that have the potential for significant opportunities.

Interestingly, in June 2021, South Korea's exports surged significantly by 39.7%; - mostly on chip and car demand. The exports surge marked the fourth consecutive month characterized by double-digit growth statistics. Despite this being a reduced pace, the situation has been helped by impressive economic recovery in Korea's major markets. As noted, this growth was marked by strong demand for cars and memory chips.

Further, Korean exports surged by an encouraging 39.7%; rate in June compared to a similar period just 12 months before. The trade ministry data also indicated that- at $54.80 billion- this was actually the third-largest ever recorded value. The value surpassed the 33.6%; average of the more than 17 economic estimates by Reuters. It also marked the 8th consecutive month of growth.

Korean exports notably experienced a sharp increase in May 2021-46%;; this was the sharpest increase since 1988. The entire nation closely watched the monthly economic data since this was widely regarded as the global trades' bellwether. Through the sale of semiconductors overseas, this represented the country's top export commodity. The 34.4%; growth indicated an improved performance and had remained steady for the 12th month in a row. Exports from petrochemical products and cars had also surged by 68.5%; and 62.5%;, respectively. Further, the data indicated Korea's imports grew exponentially by 40%; in June; this exceeded earlier forecasts that showed a 33%; jump. At the same time, the trade surplus remained steady at $4.44 billion compared to the $ 2. 94 billion the previous month. Earlier on, Korea's Ministry of Finance sharply upgraded the 2021 growth forecast to 4.2%;; this was an 11%; high, marked by an 18.5%; increase in total exports. Overall, this data guarantees Seoul's place as Asia's economic hub; yes, things are undergoing a positive turn.

Asset Management and Financing

The South Korean government has lately promoted the National Pension Service; this is simply the public pension plan. It has promoted the demands for government assets management. With more than $600 billion ( 700 trillion won) worth of assets under management, this is- clearly- the world's 3rd largest public pension plan.

A member of the Financial Supervisory Service (FSS) who heads the international affairs department reveals this: ";The market portion that foreign firms occupy here remains small; this shows there are ample opportunities for businesses."; He continues: ";Korea's assets management services market has continued to grow rapidly over the years. At the same time, Korea has experienced a significant influx of foreign entities in this sector. ";

";Undoubtedly, as one of the world's leading economies, Korea has much to offer to the world. Our industries are fast-growing and increasingly promising,"; the official added. ";The fact that our industries are rapidly growing is a good indicator that there'll be new demands for increased financing. This further means Korean businesses in most sectors will need more financing,"; he said.

Dynamic fintech industry

Korea boasts an advanced fintech as well as a fine IT infrastructure. Naturally, this creates synergy with foreign firms that want to enter the Korean market. For example, recently, the Seoul Metropolitan Government (SMG) took steps to open a special fintech lab on Yeouido. It currently houses 70 startups- 24 of these are foreign, and 46 are local. All these have collectively attracted $30 billion-plus worth of investments. By the end of 2019, there were 27.6 billion won in sales. An SMG economic policy official said that the entire Asian continent has positively acknowledged Korea as an IT testbed. This data derives from the mobile-based services development and penetration rate. The official said this in direct reference to the local digital lender (KakaoBank's) resounding success. Many foreign startups now seek to test their mobile-based services in Korea first before taking them to other countries. The official said this is best illustrated by the number of foreign companies that are now stationed at the Seoul Fintech Lab. The lab hosts various countries' startups (including the US, Singapore, Hong Kong and Canada).