[Exclusive] Domestic Financial Investment Industry Leaders Head to India as the 'Post-China' Destination One After Another

[K-Investment Targeting India] ① The Rise of India, the World's 5th Largest Economy
Seo Yuseok, Chairman of the Korea Financial Investment Association, to Attend the Asia Securities Forum Annual Meeting in Mumbai, India, Later This Month
Monitoring Trends of Gujarat International Finance Tech City Project, India's First International Finance and IT Service Hub
Next Month, Representatives Bae Jaegyu and Kim Seonghun to Explore Investment Opportunities Locally in India

Editor's NoteAs the global supply chain is being reshaped due to the US-China conflict, India has rapidly emerged as a market to replace China. India is especially attracting attention as a major investment destination for domestic companies and financial institutions. Last year, India recorded a nominal GDP growth of 6.8%, surpassing the UK to become the world's 5th largest economy. In India, with a population of 1.4 billion, individual investors have surged since the COVID-19 pandemic. Among them, the rapidly growing Indian middle class has recently been increasing their assets through systematic investment plans in funds. Domestic financial firms are also increasingly heading to India to secure the assets of the Indian middle class, which is expected to account for 44% of the total population by 2030.

Seo Yu-seok, Chairman of the Korea Financial Investment Association (right), held a meeting with Amit Kumar, Ambassador of India to Korea, at the Financial Investment Center in Yeouido, Seoul, on April 4th, discussing cooperation plans between the financial investment industries of both countries, and shook hands afterward. Photo by Korea Financial Investment Association

Starting this month, leaders of the domestic investment industry, including Seo Yu-seok, Chairman of the Korea Financial Investment Association, and CEOs of asset management companies, are boarding flights to India one after another to understand the trends in India's capital market and explore new investment opportunities.

According to the financial investment industry on the 16th, Chairman Seo will attend the Asia Securities Forum (ASF) annual meeting held in Mumbai, India, at the end of this month. Chairman Seo plans to meet with key officials of financial companies in Mumbai to gather information on the Gujarat International Finance Tec-City (GIFT CITY) under construction in Gujarat state and local financial investment information. Seo Yu-seok said, "I plan to meet with representatives of global financial companies operating locally in Mumbai to understand the outlook of the global financial market and to learn about the trends related to the International Finance Tec-City, a kind of digital financial special zone being built in Gujarat state, India."

Gujarat state in India is the region where Prime Minister Narendra Modi served as Chief Minister from 2001 to 2014 and is an important political background for him. The Gujarat International Finance Tec-City project is India's first international financial and IT services hub development project. It benchmarks global financial centers such as La D?fense in Paris, Shinjuku in Tokyo, and Docklands in London. It is expected to be used as a regional headquarters for Indian and global financial companies. Over 110 new buildings will be constructed.

The Gujarat International Finance Tec-City project is a large-scale urban development project with a total cost of 24.5 billion Indian Rupees (approximately 378.9 billion KRW). It includes expanding various infrastructure such as housing, roads, bridges, drainage, and sewage treatment.

Major IT and financial institutions, including Google's global fintech operations center, have confirmed their entry into this area. Sundar Pichai, CEO of Google, recently met with Prime Minister Modi and promised to open Google's global fintech operations center in Gujarat International Finance Tec-City. He also announced plans to invest 10 billion USD (approximately 13.1 trillion KRW) in India's digitalization fund. Seo Yu-seok said, "Although I may not have time to visit Gujarat state itself, I will gather information on the status of Gujarat International Finance Tec-City while staying in Mumbai to see if there are areas for cooperation with our financial investment companies."

Next month, Baek Jae-gyu, CEO of Korea Investment Management, and Kim Sung-hoon, President of Kiwoom Asset Management, among other asset management company CEOs, will fly to India. They plan to meet with local financial company officials to explore investment opportunities and ways to create new revenue models, as well as review the current status of local investments, regulations, and products in India.

Currently, among Korean financial investment companies, only a limited number such as Mirae Asset, Shinhan Bank, Woori Bank, and Korea Development Bank have entered the Indian market. Asset management CEOs are expected to actively seek ways to enter the Indian market.

India, currently the most populous country in Asia (approximately 1.43 billion people), is rapidly emerging as a market to replace China amid the reshaping of the global supply chain due to the US-China conflict. In fact, India’s nominal GDP grew by 6.8% last year, surpassing the UK to become the world’s 5th largest economy. By 2027, it is expected to overtake Japan and Germany to become part of the G3 (top three major economies).

Shin Seung-woong, Senior Researcher at Shinhan Investment Corp., explained, "While China is faltering due to internal and external risks, the so-called 'post-China' or 'India trend' is being discussed. Unlike other emerging countries, India’s economic growth benefits are shared by companies, and India’s representative index, Nifty50, has recorded overwhelming returns over the past 10 years."