Seoul's global financial ascent fueled by fintech, says ex-lord mayor of London
The former Lord Mayor of London, Michael Mainelli, underscored the importance of connectivity in positioning Seoul as a global financial powerhouse, highlighting fintech innovations and a robust regulatory framework as key strengths.
Mainelli, now chairman of think tank and consultancy firm Z/Yen Group, believes that enhancing interconnectivity within the global community is essential for Korea and its cities to advance further and remain competitive in the rapidly evolving global economy.
'Connectivity is everything. You have to be connected to be a commercial center. You can't be an international commercial center without international people,' he said while delivering a speech at a forum hosted by the Institute for Global Economics, focusing on Korea's global competitiveness. The event took place at a hotel in Seoul on Thursday.
Mainelli also recognized the importance and influence of Korean popular culture.
'Do not underestimate the impact that K-culture has had around the world, including K-pop and K-drama. There are people who would have never heard of Korea and now have it beamed by Netflix into their sitting rooms, watching and absorbing Korean culture.'
'Reputation is vital. You can lose a good one just overnight,' he added.
Sharing the findings of the Global Financial Centres Index released by Z/Yen Group last week, the chairman noted that Seoul has made significant strides in its quest to outperform major cities.
'Seoul has been doing extremely well, but it wasn't even on this chart 20 years ago. So it is tremendous progress,' said Mainelli, an expert in financial markets, technology and the development of financial centers.
Seoul ranked 10th among 133 cities in the latest index, which evaluates and ranks the competitiveness of financial centers worldwide to reflect shifting dynamics and emerging trends in global finance.
Seoul previously ranked 36th in 2019, steadily climbing to 16th in March 2021, and to 12th in March 2022. Since 2023, it has consistently ranked in the top 10.
Notably, Seoul maintained its 10th-place ranking in the 'fintech' category for the second consecutive year, reaffirming its position as a digital financial hub.
'Fintech again, Seoul does very well, and I believe this could be core to your competitive advantage due to the skills that you have here throughout Korea, especially in Seoul and Busan,' Mainelli said.
The Z/Yen Group head said the strength of Seoul's regulatory system is particularly satisfying, which provides a sense of optimism as it is recognized globally as a strong framework.
Seoul Mayor Oh Se-hoon, who also attended the event, pledged to develop Seoul to emerge as Asia's preeminent financial hub. 'We will create a vision for Seoul and drive change by focusing on transforming the fundamental financial structure and ecosystem,' he said.
For the Korean economy to make significant advancements, the revitalization of finance will play a major role in fostering a business-friendly environment and boosting investments in research and development, he added.
Mainelli further emphasized that fair treatment is a fundamental strategy for creating a successful financial hub, and "goes well beyond telling your regulators to be fair."
"Take for example, something as simple as competition regulation. If I enter a market where there's one giant pension fund as a foreign entity and I begin to have a problem, we know who's going to win and it's not me. So I stay out of those waters.'
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