BUSAN METROPOLITAN CITY ORDINANCE ON THE PROMOTION OF FINANCIAL INDUSTRY
Ordinance No. 4329, Dec. 3, 2008
Amended by Ordinance No. 4329, Oct. 28, 2009
Ordinance No. 4578, Dec. 29, 2010
Ordinance No. 4638, Jul. 13, 2011
Ordinance No. 4833, Dec. 26, 2012
Ordinance No. 5081, Jan. 1, 2015
Ordinance No. 5228, Sep. 23, 2015
- Article 1 (Purpose)
- The purpose of this Ordinance is to facilitate the creation and development of Busan International Financial City and to contribute to the growth of the local economy by promoting and supporting the advancement of the financial industry.
- Article 2 (Definitions)
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For the purpose of this Ordinance, the following terms shall be defined as
follows: (Amended by Ordinance No. 4638, Jul. 13, 2011)
- 1. The term "financial industry" refers to the industry that administers the affairs of the financial business, insurance and pension businesses, and financial and insurance service businesses as classified under the Korea Standard Industrial Classification publicly notified by the Commissioner of the Korea National Statistical Office pursuant to Article 22 of the Statistics Act;
- 2. The term "financial institution" refers to a domestic or foreign financial institution as prescribed under Subparagraphs 2 and 3 of Article 2 of the Act on the Creation and Development of Financial Hubs (hereinafter referred to as the "Act");
- 3. The term "financial services institution" refers to a corporation that employs at 10 or more regular employees and administers the affairs of judicial, accounting and taxation services, computer programming services, system integration and management services, processing materials and hosting services as classified under the Korea Standard Industrial Classification publicly notified by the Commissioner of the Korea National Statistical Office pursuant to Article 22 of the Statistics Act.
- Article 3 (Duties of the City)
- Busan Metropolitan City (hereinafter referred to as the "City") shall establish and implement various policy measures to promote the advancement of the financial industry and to facilitate the creation and development of the Busan International Financial City.
- Article 4 (Establishment of the Plan for Financial Industry Advancement Promotion) (1) The Busan Metropolitan City Mayor (hereinafter referred to as the "Mayor") shall establish and implement an action plan to promote the advancement of the financial industry for the creation and development of the Busan International Financial City.
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(2) The action plan under paragraph (1) shall include matters falling under
each of the following subparagraphs:
- 1. Basic direction and objective of the policies on the mid and long term promotion of the financial industry advancement;
- 2. Matters concerning the attraction of and support for the financial institutions;
- 3. Matters concerning the training of the financial specialists;
- 4. Support for the research activities of the financial research and academic organizations;
- 5. Improvement of the financial system to promote the advancement of the financial industry;
- 6. Other matters necessary to promote and support the advancement of the financial industry.
- Article 5 (Provision of Location Subsidy)
- The Mayor may support the financial institution by granting, within limits of budget, the location subsidies in case the financial institution purchases a building or building site in units or purchases · rents a building or building site or newly constructs a building to move into (this includes establishment; the same shall apply hereinafter.) the Busan Metropolitan City area (hereinafter referred to as the "City area").
- Article 6 (Provision of Employment Subsidy)
- The Mayor may support the financial institution by granting, within limits of budget, the employment subsidies in case the financial institution moves into the City area and creates new jobs.
- Article 7 (Provision of Education and Training Subsidy)
- The Mayor may support the financial institution by granting, within limits of budget, the eduction and training subsidies in case the financial institution moves into the City area and provides eduction and training to its officers and employees who are newly employed. (Amended by Ordinance No. 4833, Dec. 26, 2012)
- Article 8 (Object and Scope of Location Subsidy, etc.)
- The Mayor may support the financial institution by granting, within limits of budget, the eduction and training subsidies in case the financial institution moves into the City area and provides eduction and training to its officers and employees who are newly employed. (Amended by Ordinance No. 4833, Dec. 26, 2012)
- Article 9 (Financial Specialist Training) (1) The Mayor may designate universities or research institutes, or other financial agencies or organizations as the training institution for financial specialists to educate and train the financial specialists. In this case, the Mayor may support the training institution by providing, within limits of budget, part of the expenses necessary for such education and training.
- (2) The Mayor may support the financial institution by providing, within limits of budget, part of the expenses in case the financial institution establishes a comprehensive training center within the City area to train and promote the quality of the financial specialists.
- Article 10 (Research Activities on Financial Matter)
- The Mayor may support the financial research and academic organizations by providing, within limits of budget, part of the expenses in case the financial research and academic organizations established within the City area carry out research activities on financial matters for the creation and development of Financial Hub Korea, Busan.
- Article 11 (Support for Financial Services Institution)
- The Mayor may support the financial services institution by providing, within limits of budget, part of the expenses in case the financial services institution that ensures the smooth operation of the business activities of the financial institution such as financial transactions, etc. moves into the City area.
- Article 12 (Preferential Support for Financial Hub) (1) Notwithstanding Paragraphs 5 through 7, the Mayor may preferentially support financial institutions by granting, in an amount not exceeding two times the support limit, the location subsidies, employment subsidies and education and training subsidies, where financial institutions established in a foreign country or outside the City area and the Korea Trade Insurance Corporation established under the Trade Insurance Act (hereinafter referred to as "financial institution, etc.") relocates to the Financial Hub (including a relocating a department only which processes the affairs of shipping finance; in such cases, this shall be limited to where the business has more than a certain scale, prescribed by the Mayor) as prescribed under Subparagraph 1, Article 2 of the Act (hereinafter refereed to as the "Financial Hub"). (Amended by Ordinance No. 44638, Jul. 13, 2011)
- (2) Notwithstanding Article 9, the Mayor may preferentially support financial institutions, etc. under Paragraph (1) where it establishes the training institution for financial specialists within the Financial Hub to train and promote the quality of, the financial specialists. (Amended by Ordinance No. 44638, Jul. 13, 2011)
- (3) Notwithstanding Article 11, the Mayor may preferentially support a foreign financial services institution or domestic financial services institution that had executed a contract therewith where the foreign or domestic services institution relocates to the Financial Hub.
- (4) The Mayor may support the foreign financial institution by partially subsidizing, within budgetary limits, the lease for the house used by its officers and employees where the foreign financial institution relocates to the Financial Hub.
- (5) Where a domestic financial institution or foreign financial institution, etc. relocates to the Financial Hub following establishment of an enterprise under Article 12-2 (1) of the Act and Article 14-2 of the Enforcement Decree on the same Act, the Mayor may partially subsidize funds for installing equipments for business. (Newly Inserted by Ordinance No. 4833, Dec. 26, 2012)
- Article 13 (Reduction and Exemption of Local Tax, etc.) (1) The Mayor may, pursuant to the Restriction of Special Local Taxation Act and the Busan Metropolitan City Ordinance on Tax Reduction, reduce or exempt local tax imposed on the real property and the car for business acquired by the financial institution in order to relocates to the City area. (Amended by Ordinance No. 4578, Dec. 29, 2010)
- (2) Pursuant to the Public Property and Commodity Management Act and the Busan Metropolitan City Ordinance on Public Property and Commodity Management, the Mayor may reduce or exempt the fees and charges imposed on the public property used or rented by the financial institution in order to move into the City area. (Amended by Ordinance No. 4329, Oct. 28, 2009)
- Article 14 (Administrative Support, etc) (1) The Mayor may provide administrative support for authorization, permission, etc. by appointing any public officer in exclusive charge of such matter in case the financial institution, etc. moves into the City area. (Amended by Ordinance No. 4638, Jul 13, 2011)
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(2) In case the financial institution determined to be the subject of support
under the Schedule moves into the Financial Hub, the Mayor may provide
its officers and employees with honorable treatment and support falling
under any of the following subparagraphs:
- 1. Exemption from a toll imposed on all toll roads managed and operated by the City:
- 2. Free parking at public-managed parking lots of the City;
- 3. Free admission to the facilities such as museums, art galleries, etc. that are managed and operated by the City;
- 4. Provision of admission tickets for cultural events and public performances supervised by the City;
- 5. Invitation to major events of the City.
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Article 15 (Busan International Financial City Promotion Center)
(1) The Mayor shall establish the Busan International Financial City
Promotion Center (hereinafter referred to as the "Center") to conduct the
following affairs concerning creating and developing the Busan
International Financial City: (Amended by Ordinance No. 5228, Sep. 23,
2015)
- 1. To develop the international financial city and formulate strategies to foster the financial industry;
- 2. To attract domestic or foreign financial institutions and international financial organizations;
- 3. To nurture financial experts and operate linkage programs between industry, academia, and government;
- 4. To hold exhibitions, seminars, or forums related to finance;
- 5. To publish reports on research and policies related to international finance, and establish a financial database;
- 6. Other matters concerning developing the financial industry.
- (2) The head of the Center may request the City for necessary cooperation to ensure the duties such as attracting the financial institutions, etc. and administrative support, etc., are facilitated. (Amended by Ordinance No. 4638, Jul. 13, 2011)
- (3) The head of the Center may, upon approval by the Mayor, separately determine the rules necessary to operate the Center.
- (4) The Mayor may outsource the management and operation of the Center to non-profit corporations or organizations related to the financial industry in order to professionally and effectively promote affairs under paragraph (1). (Newly Inserted by Ordinance No. 5228, Sep. 23, 2015)
- (5) When the Mayor outsources the management and operation of the Center pursuant to paragraph (4), he/she may fully or partially subsidize necessary expenses, within budgetary limits. (Newly Inserted by Ordinance No. 5228, Sep. 23, 2015)
- Article 16 (Application Mutatis Mutandis)
- Regarding procedures, methods and conditions for subsidies under Articles 5 through 12, the Busan Metropolitan City Ordinance on Management of Local Subsidies shall apply mutatis mutandis. (Amended by Ordinance No. 5081, Jan. 1, 2015)
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ADDENDUM
- This Ordinance shall enter into force one month after the date of its promulgation.
