Busan strives to join global financial powerhouses

Kenneth Griffin, founder of the hedge fund Citadel, relocated the firm’s headquarters from Chicago to Miami in 2022. “Miami represents the future of America. Both New York and Miami will be optimal long-term locations as major financial centers of the U.S.,” he said. Citadel now manages more than $65 billion in assets.

Once known mainly as a resort city, Miami is rapidly transforming into a global financial hub. Between 2020 and 2023, 56 investment firms moved their headquarters from New York to Miami, bringing over $1 trillion in assets. More than 500 financial companies operate in the Miami area, with major firms such as Goldman Sachs, Blackstone, and Starwood opening bases there. “Harry’s,” a well-known Manhattan restaurant popular with Wall Street financiers, opened a Miami branch last year. Miami is increasingly called “Wall Street South.”

The financial industry used to depend heavily on in-person interactions. At stock exchanges, traders shouted bids and offers as prices fluctuated, and transactions were recorded by hand. As global finance transitioned to digital systems, Wall Street’s dominance declined, and many firms began operating remotely. Traders no longer needed to be on the floor; investment decisions took place through video conferences with offices worldwide, including London and Singapore.

Additionally, with interest rates near zero, clients stopped depositing money only in banks. Banks no longer dominated finance. Young financial professionals moved to Miami, attracted by its sunny weather and ocean views. Large hotel ballrooms were converted into trading centers. Despite its hurricane risk, Miami had advanced mobile power systems able to handle sudden spikes in electricity use and server loads. The city also offered relatively low taxes and lenient regulations.

Busan has long dreamed of becoming a global financial hub. In January 2009, the South Korean government designated Busan as a center for ship financing and derivatives. Institutions such as the Korea Exchange, Korea Asset Management Corporation, and Korea Housing Finance Corporation moved to Munhyeon Innovation City in Busan. However, relocating a few financial firms has not been enough to transform the city. Despite the Korea Exchange’s presence in Busan since 2007, Seoul’s Yeouido district remains the dominant financial center in South Korea.

For Busan to grow beyond ship finance and become a true financial hub, it needs stronger incentives. Developing an attractive investment environment, including quality housing, education, and tax benefits, is essential to draw talent. A positive step is the upcoming opening of the Busan Digital Asset Nexus, a blockchain-based exchange scheduled to launch in September. The city must continue efforts to attract new financial markets and revive plans to become an offshore hub for the Chinese yuan.

States and cities in the United States constantly compete to improve their appeal. Texas, once known for oil, has emerged as a center for big tech. Tesla launched autonomous robotaxis in Austin, and Apple plans to build AI system servers in Houston. These moves are driven by lower costs and lighter regulations. Today, financial investments can be made from Mediterranean hotels or Southeast Asian resorts. Amid this shift, Busan has a real chance to redefine its role as a financial hub.