Fuld Ebullient on Seoul

Richard Fuld, chairman of Lehman Brothers, said, in a recent interview with a local economic news in Seoul, that Korea has a great potential to become a financial hub in the world.
On concerns that the Korean economy would be like a nut cracker, the global financier said Korea understood the nature of its economic crisis in the past and successfully carried out reform. It will do well sandwiched between Japan and China as there is a high regard for the Korean economy.
"Funds will flow to the place where the highest profit can be attained in the world," Fuld said, adding that a key matter is the electronic connectivity and Korea should move toward that direction.
Lehman Brothers arrived in Korea in 1990 and opened its branch in April, 2002. Its business record include the establishment of a joint venture with Woori Bank, consultant for the sale of LG Group's semiconductor unit and for the exchange of stocks worth $3.1 billion between SK Telecom and Korea Telecom, among others.
He said he is optimistic on the Korean economy, claiming that those who forecast from 4 to 4.2 percent growth for the Korean economy this year a little too conservative. He said the growth rate would be around 5 percent. The Korean government has been pushing economic reform to earn trust for its financial market, which is a positive development for the economy.
He said he doesn't think the Korean economy will be too squeezed sandwiched between Japan and China with Korea enjoying a high respect in the international market. Korea understood the nature of its problems in the past and set up plans to overcome them, if not expand them. More importantly, they moved quickly with the plan. The move itself earned a high respect in the international community as it overcame many problems Now, Korean economic planners should try to put together a proper plan for their next move to make Seoul an international financial hub, the chairman said. He said, "Chances are here now already for Seoul to become a financial hub in the world," Fuld said.
He said financial regulations are every where. Hong Kong, too, has enough financial regulations. Most important thing is that investors should feel at ease by making the financial market transparent A key matter is the electronic connectivity. Why would investors should be satisfied with 5,6, 8 and 11 percent return on their investment, while they can earn 15, 20 and 25 percent return in foreign countries, he asks.
In the near future, funds will move quickly to markets where they can make most profits, which is why financial institutions should pursue the electronic connectivity. "I am sure Korean financial industry would move to that direction," the global financier said.
The fact that large foreign investment funds have been moving into Korea means that Korea enjoys a high esteem in the international financial community. If Korea wants to be a financial hub, it should create an environment for foreign investors to do business and make money in terms of accounting practice, legal set up, and corporate governance. They should also make up a stable and fair platform where domestic investors can participate. nw