Korean FinTechs Visit the Financial Centre Frankfurt

To help mark the 25th anniversary of Germany’s reunification, a 14-member South Korean delegation headed by Congressman Kim Jeong Hoon (pictured with Angela Merkel during the reception) visited the financial centre, Frankfurt. The delegation included leading FinTech companies like YAP Global, Finotek, Yello Finance Group and Datastreams corp. Frankfurt Main Finance organised an exchange at the offices of Frankfurt Economic Development between Frankfurt’s universities, Germany’s leading FinTech companies and the Maininkubator.

South Korea is the world leader in mobile payment among industrialized countries with a usage rate of 40%. With more than 60 million mobile payment users, Koreans are among the world’s fastest adaptors of FinTech.

Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance was impressed: “In this regard, Germany needs to catch up and we want to this to happen. On the other hand, in Frankfurt we have FinTech companies, like as 360T, which are unparalleled infrastructure providers. Korea and Germany complement each other well and we therefore hope to continue to work together even more closely.”

In December 2013, the financial centres Frankfurt and Busan signed a “Memorandum of Understanding” to mutually support and strengthen one another.

Economics Minister Al-Wazir Travels with Delegation to China

The Hessian Economics Minister Tarek Al-Wazir departed Saturday for a weeklong trade mission to the People’s Republic of China. A few months after Frankfurt being named the first Renminbi first trade centre in the Eurozone, finance and economics meetings are at the centre of the trip. “The foundation has been laid, so that Frankfurt can establish itself as a central RMB trading platform in the euro area. The talks with the Chinese central bank, amongst others, will be concerned with fine tuning so that operations can get off the ground as quickly as possible. This will greatly benefit the financial centre of Frankfurt and also many SMEs in Hesse, whose business with Chinese partners will be significantly simplified, “said Al-Wazir upon his departure in Frankfurt.

“The conditions for even closer integration between Hessian and Chinese companies are good,” said Al-Wazir. China is the most important economic partner in the Asian market. The combined overall trading volume is currently over 9 billion Euros. At the same time, China is among the most active foreign investors in Hessen. “More and more Chinese technology companies, who want to invest in high-tech segment, are looking for a location in Europe. Hessen offers especially optimum conditions with its wide range of qualified professionals, high economic power and Frankfurt Airport as an international hub.” There is a great demand in China in sectors like environmental industries, energy efficiency, new materials and information and communication technologies. The Hessian economy compliments this demand with a high degree of expertise in these fields.

The delegation will stop in the capital Beijing, the financial centre of Shanghai and the Hessian partner-province of Hunan.

In Beijing, the conversations with the Chinese Ministry of Commerce (3/11) and the Ministry of Industry and Information Technology (4/11) will focus on the expansion of trade and investment.

In Shanghai (6/11) investment conditions in the Shanghai Free Trade Zone will be a focus of discussions with the local Trade Commission and Investment Authority. On the same day, the 3rd Hessen-Shanghai Business Forum will take place.

In addition to the capital Beijing and the economic hub Shanghai, the Hesse’s partner province Hunan (since 1985) is the third destination (5/11.). Economically speaking, Hunan is among the 10 strongest provinces in the PRC and since June this year is connected to Frankfurt with a direct flight. Hunan is one of the provinces with ambitious goals for improving their environmental quality and plans for resource-saving, environment-friendly development path. There project and company visits will be at the centre.

Overall, the delegation includes nearly 70 people. Their journey will last until 07/11.

Frankfurt and Istanbul Cooperate Successfully in the Finance Sector

Mayor Feldmann sees positive results on Istanbul visit: submits concrete projects to develop digital infrastructure and locations

(Pia) In a recent visit Istanbul, Mayor Peter Feldmann and his 20-member delegation were received by Ahmet Selamet, the Deputy Mayor of the 15 million person metropolis. Conversations focused on a mid-term review of 2012’s Memorandum of Understanding, on economic cooperation in the development of Istanbul as a financial centre.

Since 2012, several expert meetings and workshops have been held in Frankfurt and Istanbul, most recently at the Istanbul Finance Summit in 2014. Core themes in consultation with Frankfurt Economic Development and Frankfurt Main Finance were the development of a financial centre cluster, the spatial development of financial centres and the necessary digital infrastructure. To this end, Frank Orlowski of DE-CIX Frankfurt served as a competent representative of the Digital Hub FrankfurtRheinMain.

The City of Istanbul was especially pleased to see that Mayor Feldmann and the Frankfurt Economic Development already had two concrete project proposals: plans to develop a digital infrastructure and a settlement strategy for the growing financial centre Istanbul.

Press release on the City of Frankfurt website (German).

South Korean Delegation Visits Financial Centre Frankfurt

In October 2015, leading Korean FinTechs, including Finotek, Yello Finance Group and Data Stream Corp. visited the Financial Centre Frankfurt under the leadership of Congressman Kim Jung-Hoon. The delegation made forward looking cooperation agreements while in Frankfurt. In addition, meetings were held with KfW IPEX Bank and other Frankfurt institutions. A FinTech workshop organized by Frankfurt Main Finance brought together representatives from FinTech companies, universities and politics from both Busan and Frankfurt. Both Financial Centres see great potential for future exchange in the area of FinTech.

“We have created a trusting partnership with Korea. From derivatives trade to maritime financing to FinTech, these are all themes in which we closely cooperate. We have been especially successful in bringing together financial institutions, universities and young FinTechs from both sides.” explained Dr. Jochen Biedermann of Frankfurt Main Finance at the end of the visit.

Peking

Long-time cooperation between Hesse and Beijing

The friendly relations between Frankfurt and China go back to the eighties. The partnership with Guangzhou, the capital of Guangdong province, was established as early as 1988.

In order to strengthen the economic ties between the cities of Frankfurt and Beijing, the Frankfurt Economic Development Company and the Beijing Investment Promotion Bureau signed a memorandum over friendly cooperation in August 2007.

Since then, the dynamic economic development in China, and especially in Beijing as the centre of the financial industry, has rapidly accelerated. In the third quarter of 2012, over 1,000 financial institutions and over 400 supervisory and regulatory bodies were headquartered in the Beijing Financial Street. Around 174,000 employees work there today for various kinds of financial service providers, which amounts to 70 percent of all employees in the finance sector throughout Beijing. The volume of financial assets totalled 62.1 trillion yuan RMB, accounting for almost 50 percent of the national total.

Accordingly, it was only logical for the financial hub Frankfurt to sign an agreement with Beijing in 2012 about long-term cooperation between the two financial centres. The arrangement centres on issues of financial market regulation and risk management as well as the education and training of managers and executives. The financial location Frankfurt is thus further expanding its excellent capabilities and contacts in these areas.

With its Xicheng District, Beijing is one of the most dynamic financial centres in the world. The collaboration is a valuable asset to the global network of the financial centre Frankfurt. Xicheng offers great business potential, which is to be developed for the financial industry in Hesse by the joint initiatives of the Hesse state government, the representatives of the economic community in Hesse and the financial centre Frankfurt.

The financial centre agreement is rounded off by an agreement to stage a Hessian-Chinese Economic and Trading Day in Frankfurt. The possibility of setting up a Chinese-Hessian business advisory board is being explored.

Shanghai

Hesse-Shanghai cooperation deepens relations with China

As well as with the capital Beijing, close links also exist with the 23 million metropolis of Shanghai. The Hesse-Shanghai Business Forum has been taking place every year since 2012, alternating between the cities of Shanghai and Frankfurt.

The first international Hesse-Shanghai Business Forum was staged in 2012 under the title “Financing of investment and trade – collaboration between banks and companies”. Around 200 visitors came together at the event. The Chinese participants expressed their approval about the outstanding infrastructure, the comprehensive range of business-related services, the number of highly skilled workers and the good educational facilities for Chinese children in the financial hub Frankfurt.

“Strengthening partnership and investment” was the title of the second Hesse-Shanghai Business Forum in 2013 in Shanghai. It focused on issues such as Frankfurt as a European centre for business transactions with the Chinese currency, the cooperation between the financial centres Shanghai and Frankfurt, and the financing of investment and trade in Germany and China.

The Chinese companies have a great interest in trading with and investing in the German federal state of Hesse. Many are looking for concrete discussions and financing partners for just that purpose. The Hesse-Shanghai Business Forum provides a good platform for such an exchange.

During the forum it once again became clear that Frankfurt’s development towards becoming the renminbi business centre for the euro area is moving forward rapidly. As early as 2012, Germany lay in first place in terms of cross-border renminbi payment transactions within Europe. If the Sino-German economic exchange increases from its figure of 130 billion euros in 2012 to 200 billion euros in 2015, as intended by the Chinese government, this position will be further enhanced. Many companies are making it clear that they want to use the renminbi (RMB) for their business transactions. The number of financial institutions in Germany that have traded in RMB increased from 17 to 62 within a year.

In China the development of an RMB Centre and a liberalised trade in goods and services is being particularly promoted in Shanghai. The establishment of the China (Shanghai) Pilot Free Trade Zone is seen as a rehearsal for a gradual opening of the markets in China. An agreement with the city of Shanghai aims to exploit the opportunities arising from this endeavour through a close cooperation between the financial and economic centres of Shanghai and Frankfurt.

Unterzeichnung MoU Frankfurt und Busan

Frankfurt Main Finance Signs Cooperation Agreement with South Korean Financial Centre Busan

The South Korean city of Busan and Frankfurt Main Finance aim to mutually promote and strengthen their financial centres. This is the subject of the Memorandum of Understanding, signed today by representatives of both parties at the premises of Frankfurt Main Finance. The city of Busan was represented by Deputy Mayor Cho Donyoung, as part of a delegation visit made up of representatives from the Korean finance industry and government officials. Frankfurt Main Finance was represented by Wilhelm Speckhardt, Mayor of Eschborn, in his capacity as member of the Management Board and the Executive Committee. Read more