Prospects bright for Jeju financial center

Jeju Island could have the potential of becoming an international offshore financial center, an international consultancy said yesterday.

PricewaterhouseCoopers, the consulting and accounting firm, said the proposed Jeju International Financial Center, which would host the offshore activities, could see annual revenues of 28 billion won ($23.4 million) by 2030.

The PwC study was commissioned by the Jeju Special Self-Governing Province and the Jeju Free International City Development Center (JDC).

In addition, the financial center will increase Jeju’s gross domestic product by up to 1.24 trillion won and create around 6,200 jobs by 2030, the study said.

It predicted that the financial operations will add 75.3 billion won in tax revenues and achieve 5.2 billion won in tourism revenue.

Jeju is aiming to create a low-tax financial center that would serve as a base for offshore companies and offshore funds.

The study was released at a seminar hosted by the Jeju Financial Forum at Korea Press Center, Jung District, central Seoul.

“Our province [Jeju] has been pushing ahead with a plan of establishing an international financial center since 2002 when we were setting up the Jeju Free International City plan. However, we’ve been facing difficulties as the government earlier took a passive attitude about offshore financing,” said Jeju Governor Woo Keun-min.

Although this has delayed the launch of the financial center, Woo said that “present conditions differ from the past and the government is focusing more on the globalization of the financial industry as it has recognized the financial industry as our new growth engine.” The Jeju government will soon draw up a plan based on the study, said a JDC official.

By Jung Jae-yoon [jyj222@joongang.co.kr]