BIFC, at the heart of finance?

BIFC, at the heart of finance? 

     Imagine 2013 of Busan. What do you see? You would see Asia’s giant international finance city. Upon BIFC’s completion, it would have a huge impact on local economy as well as bringing new life to its city of Busan. The following picture is projected 3D image of an aerial view of BIFC.

     The construction of ‘Munhyeon Finance Complex’ (MFC) has finally gotten off the ground. ‘Busan Center for International Finance‘ (BIFC) will be built in the core of this enormous complex. It would be a 63 stories building just like the signature skyscraper of Seoul’s ’63 Building’. Lead by Hyundai Engineering and Construction Co, a joint venture called ‘Finansia’, was selected as a preffered in this project. Finansia proposed a concept of developing ‘a mega wave in Finansia (finance-Asia) which refers to expanding through five oceans and six continents as a financial hub of Asia. The center is expected to be completed in the 2013 and is going to be a landmark of ‘MFC’ as well as its innovative city of Busan in near future. As Busan was announced to be a finance center city, January, last year, this mega project is set to strengthen related infrastructure and needs. 

     To make this innovation city project successful, many of government financial institutions and agencies as well as private companies decided to move into ‘Munhyeon Innovation City’ (MIC) and ‘Development Committee of Busan Finance Center’ was formed. The committee has planned the activities of organizing meetings between private and public administrators in Seoul and Busan and also overseas. They are still working for resolving differences among financial institutions that will be moving into MIC and trying to solve required laws to be revised to make this easier.

     However, there’s a bad news for those expecting this financial hub to be completed soon. It is quite behind its schedule of completion. It was originally expected to have a grand opening at the end of 2012. Several reasons that it couldn’t follow the dates are followings. The government did not approve the plan of public institutions’ move to the MFC. For example, KRX (Korea Exchange), who decided to move to this center, recently made an unclear decision of entering the center or not which delayed and slowed down the process. And more importantly, global financial crisis that occurred recently contributed in freezing investors to open and invest widely.

      Six public organizations surely decided to move into the center at the beginning of 2013 are KSD (Korea Securities Depository), KAMC (Korea Asset Management Corporation), HF (Korea Housing Finance Corporation), KHG (Korea Housing Guarantee Co.,Ltd), KYCI (Korea Youth Counseling Institute), KOSPO (Korea Southern Power Co.,Ltd). A city official of Busan says “Its plan fell through due to lack of using the method of Mixed-Use Development though, now it is restarting. And we expect that everyone would work hard for completion of financial complex in 2013 so that public institutions’ move in process can be done as smooth as possible in scheduled time.”

      Munhyeon Innovation City is the biggest and would soon known to be one of the leading financial complexes in Asia. As serving the financial industry and people, MIC has high hopes of becoming the center of financial world. The core of MIC, BIFC would also be introduced to world as public and private financial hub center for city of Busan and further more whole of Asia.

Min Young Kim (min4609@naver.com

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4 Responses to BIFC, at the heart of finance?

  1. hary p says:

    very nice blog
    I was greatly assisted on his information
    Thank you very much

  2. Don says:

    I was never a big fan of planned-schemes of development, because it always inadvertently distorts long-term incentives in an unexpected way; and this case is not an exception.
    As far as I can recall, there are number of plans to make Korea as the next financial hub. When it comes to the location, wasn’t that Songdo? How do two complement each other or do they actually overlap in their pre-defined roles?
    Second, it is a very dubious notion to extrapolate the fact that Busan will be the next “international” hub, just witnessing several state-owned companies moving their headquarters there. Literally, it is “Busan Center for International Finance”. In order to present your views like this, I think there should be some examples of international companies showing real interests regarding this plan.
    Finally, there are no strategic views are plans are listed here. How is it going to win accounts and compete against Hong Kong or Singapore? Are there some distinctive advantages of this city that could attract international firms?
    I think we need more information to be fully convinced with this article.

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