Support Measures Proposed for Investment, Business Development, Education, and Regulation
The Busan Institute published a report titled "Busan Digital Finance Specialization Strategy and Development Plan," outlining development measures for Busan to leap forward as a global leading digital finance city.
The report focused on presenting specialized strategies considering Busan's geographical environment and market competitiveness.
In January 2009, the government designated Seoul and Busan as financial hubs through the "1st Basic Plan for Financial Hub," promoting policies to develop Busan into a global financial city. However, to date, Busan has been evaluated as lacking competitiveness compared to major overseas financial cities.
On the other hand, major countries such as the UK, the US, and Germany have actively implemented various policies to foster the growth of fintech startups, laying a foundation for significant development of the fintech industry.
Accordingly, this report proposed the following four measures to advance Busan's digital finance industry.
First, strengthening investment in fintech startups and support for overseas expansion. Policy finance should avoid conservative approaches and encourage private investment activation.
Additionally, support programs will be established to enhance the global competitiveness of excellent startups wishing to expand overseas, and convergence financial support will be expanded to enable startups to utilize funds stably.
Second, nurturing customized fintech companies considering Busan's characteristics and competitiveness. In the carbon emission trading market, competitiveness will be secured through the advancement of data collection technology, and new business opportunities will be sought in preparation for the growth of the Voluntary Carbon Market (VCM). In the insurtech market, blockchain technology will be used to enhance convenience and transparency in transactions among contractors, intermediaries, and insurance companies, and the credit evaluation market will introduce advanced evaluation methods utilizing big data and AI technology.
Third, cultivating core digital finance talents in Busan. Through the establishment of a digital finance hub, specialized curricula will be provided, and contract departments linked with fintech companies will be newly established to operate educational programs guaranteeing employment upon completion of the relevant major.
Fourth, regulatory improvements to activate digital asset trading. Financial regulations will be shifted to principle-based and negative approaches to create an environment where innovative financial services can be freely launched. Furthermore, efforts will continue at the Busan city level to enact the "Busan Global Hub City Special Act."
Researcher Jin Park of the Busan Institute said, "For Busan to leap forward as a global financial city, it is necessary not only to introduce fintech technologies mainly used in financial institutions such as payment, settlement, and remittance but also to seek specialized digital finance development plans unique to Busan."
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