Chairman Seo Yu-seok of the Korea Financial Investment Association met on the 5th with Jacques Flis, the Luxembourg Ambassador to South Korea, and the delegation from the Luxembourg Financial Sector Development Agency (LFF) to discuss ways to strengthen financial investment cooperation between the two countries.
The LFF is a government agency that supports the development and promotion of the Luxembourg financial industry, business opportunity discovery, and the attraction of international investments.
This meeting was the first visit event since the official opening of the Luxembourg Embassy in South Korea in December 2023, according to the Korea Financial Investment Association, and it provided an opportunity to further strengthen financial cooperation between the two countries.
Ambassador Jacques Flis noted, "Luxembourg, as the world's number one international financial hub in cross-border fund markets, can offer the optimal business environment for Korean financial investment companies." He explained that, as a background to this competitiveness, there are no corporate taxes or capital gains taxes upon redemption of funds within Luxembourg, creating a favorable environment for attracting investors. He also emphasized that the size of European Undertakings for Collective Investment in Transferable Securities (UCITS) funds, which can be distributed without additional approval within the EU, accounts for more than 35% of global UCITS funds, highlighting Luxembourg's close consolidation with the European financial market.
He added, "If Korean financial institutions utilize Luxembourg's tax policies and fund networks, they will be able to secure various opportunities in the global market."
Chairman Seo Yu-seok stated, "Luxembourg is a world-class asset management hub with a stable and flexible financial system, tax benefits, and capabilities in cross-border fund management," and expressed his commitment to actively support domestic financial institutions in leveraging these strengths of the Luxembourg market to open new funding channels.
He further added, "We plan to pursue various cooperation measures with the Luxembourg Embassy in South Korea to benchmark Luxembourg's advanced financial market model, enabling Korea to grow as a global asset management hub in Asia."
The Korea Financial Investment Association has steadily expanded its cooperation with Luxembourg. In September 2019, the association formed a delegation of domestic asset management companies to visit Luxembourg and discussed regulations and service improvements related to cross-border fund transactions. In February 2023, they also consulted with Yuriko Becker, the Luxembourg Minister of Finance, on investment cooperation measures.