On March 21 2006, the Ministry of Finance and Economy in Korea issued a Bill on the creation and development of a financial hub. The Bill aims to further the Korean government's efforts to establish Korea as a financial hub in northeast Asia. Under the main provisions of the Bill, the Korean government undertakes to:
- set up and implement the basic framework for promoting a financial hub and its detailed plans for each three-year period;
- establish a level playing field both for domestic and for international financial institutions based in Korea and enhance objectivity, transparency and consistency when promulgating, amending or applying its financial regulatory measures;
- set up and carry out policies to deregulate financial institutions' business operations and to promote competition within the financial market to allow the development and sale of new financial products and financial innovation;
- set up and implement policies to improve, among others: (i) the conditions for a domestic financial institution's entrance into overseas markets; (ii) the conditions for an overseas financial institution's entrance into the domestic market; and (iii) the conditions for internationalization of the financial market and financial transactions in Korea;
- investigate the need for supply of financial professionals on a regular basis and assist the financial industry by designating a research centre or university or other institute, if necessary, to educate and train financial professionals; and
- establish the Financial Hub Assistance Centre to deal with any difficulties or concerns domestic and international institutions might have when doing business in Korea.