Financial Services Commission to Review Jeonbuk Financial Hub Designation by Year-End

Four Core Tasks for Financial Hubs Confirmed

Expert Evaluation Panel to Conduct On-site Inspections in Q3 and Q4

The financial authorities are set to implement a strategy to foster financial hubs, focusing on financial industry innovation and the revitalization of capital markets. Regarding the potential additional designation of Jeonbuk Special Self-Governing Province as a financial hub, a decision will be considered within the year after an expert evaluation panel conducts a document review and an on-site inspection.

The Financial Services Commission announced on August 19 that the 53rd Financial Hub Promotion Committee meeting was held, during which the committee reported and reviewed two major agenda items: the 7th Basic Plan for the Establishment and Development of Financial Hubs (2026–2028) and the evaluation plan for the designation of the Jeonbuk Financial Hub.

The Financial Hub Promotion Committee is an organization established under the Financial Services Commission in accordance with the Act on the Establishment and Development of Financial Hubs. The committee is responsible for formulating a basic plan every three years, as well as reviewing major issues such as designation and deregistration of financial hubs. It is comprised of ex officio members from central and local governments and related institutions, as well as private members appointed from the public sector.

At the meeting, ten new private sector members, drawn from universities, research institutions, and financial institutions, were appointed as the terms of all previous private members expired in July. The new members will serve a two-year term.

The committee identified four core tasks to support the ongoing innovation of the financial industry and the robust growth of financial hubs from this year through 2028: ▲ enhancing innovation in the financial industry ▲ establishing global-standard financial infrastructure ▲ revitalizing the capital market ▲ reinforcing the support for financial hubs.

First, the committee aims to promote innovative financial services by reflecting changes in the financial environment, such as shifts in demographic structure and advances in artificial intelligence (AI) and digital technologies. It also plans to strengthen the financial regulatory sandbox and create an environment where fintech and other financial innovations can actively occur.

The committee will also work to establish financial infrastructure at a global level. These efforts will include actively responding to the rapidly changing global financial environment—such as the convergence between financial and non-financial sectors and the expansion of sustainable finance—and supporting the advancement of the domestic financial industry.

To revitalize the capital market, the committee will make institutional and infrastructure improvements to make the market more attractive to foreign investors, enhance the credibility of the capital market, and pursue the advancement of the asset management industry.

Support for financial hubs will also be strengthened. The committee plans to proactively support the overseas expansion of domestic financial companies and to increase communication with foreign financial companies operating in Korea. Simultaneously, it intends to develop and implement tailored financial hub strategies that take into account the unique characteristics of Seoul and Busan.

The process of considering Jeonbuk for an additional financial hub designation will also move forward in earnest. Previously, on January 29, Jeonbuk Special Self-Governing Province submitted a financial hub development plan to the Financial Services Commission. The commission then conducted a public call for research services to evaluate the designation and selected a research agency in May.

On this day, the committee received and finalized a detailed evaluation plan, including elements, indicators, and scoring schemes, prepared by the research agency and evaluation panel. According to this finalized plan, the research agency and evaluation panel will conduct a document review and on-site inspection during the third and fourth quarters of this year. Based on the evaluation results, the committee will review and decide within the year whether to designate Jeonbuk as a financial hub. The designation decision will be made after reviewing the evaluation results by the end of the year.

This content was produced with the assistance of AI translation services.