FSC pulls plug on plan for Jeolla to become financial hub

The financial authorities suspended a plan to designate the North Jeolla a financial hub for state-run financial corporations and pension operators.

The Financial Services Commission (FSC), the country’s financial regulator, said Friday that a committee in charge of selecting a financial hub put the plan on hold due to a lack of infrastructure and resources.

“[The committee] reached the conclusion that North Jeolla needs to come up with a more concrete model to turn the region into a financial hub specializing in pensions and agriculture finance,” the regulator said in a statement.

The committee cited a lack of infrastructure required for large-scale financial settlements as a shortcoming.

The team was reviewing the region’s bid to become the third such location after Seoul and Busan were chosen.

The province had been pitching itself as a potential hub for pension operators as the region currently is home to the headquarters of the National Pension Service in the city of Jeonju.

The regulator also hinted that it may not expand the project to focus on increasing the competitiveness of Seoul and Busan.

“[The FSC] will focus on making efforts to bolster the standing of Seoul and Busan as the country’s financial hubs,” it said.

That was a clear departure from the previous administrations, especially the Roh Moo-hyun and Lee Myung-bak governments.

Seoul and Busan was selected in 2009 to be financial hubs when Lee took office. The Roh government initiated the project.

Former President Park Geun-hye scaled back the project.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]