Initiatives and Challenges for Realizing Osaka as an International Financial Center

Overview

An analytical article published by JLL Japan on "Initiatives and Challenges for Realizing Osaka as an International Financial Center." This detailed examination analyzes the overview of the International Financial City OSAKA Strategy and challenges for its realization from a real estate perspective. ## Key Points ### 1. Article Overview - **Author**: Takeshi Yamaguchi (Research Director, Kansai Branch, JLL Japan) - **Background**: International financial center concept specified in the government's basic policy in July 2020 - **Organization**: Establishment of the International Financial City OSAKA Promotion Committee (March 2021) - **Strategy Development**: International Financial City OSAKA Strategy approved in March 2022 ### 2. Basic Perspectives of the Strategy - **First Perspective**: Regional development - **Second Perspective**: Contributing to achieving SDGs - **Vision of International Financial City**: - Synergistic effects through cooperation with Asia and global markets - Role in avoiding risks of Tokyo concentration - Emphasis on differentiation and complementarity ### 3. Strategy Implementation Period - **Start-up Period**: 2022-2025 - **Activity Period**: 2025-2030 (Growth activity period) - **Final Goal**: Establish status as an international financial city by around 2050 ### 4. Specific Goals for Start-up Period - **Consultations**: 100 companies/year to the International Finance One-Stop Support Center Osaka (by FY2025) - **Corporate Attraction**: Attract 30 financial foreign companies (including fintech) (by 2025) - **Startups**: - Create 3 unicorn companies (by FY2024) - Create 300 startup companies (including 100 university-originated ventures) ### 5. Factors Supporting Realization - **Large-scale Redevelopment**: - Transformation into a city enriched with work, living, and leisure beyond just offices - Rising momentum for establishing offices by foreign and emerging companies - **Osaka-Kansai Expo (2025)**: - Demonstration experiments as an "experimental field for future society" - Increase in expo-related investments - Consideration of issuing Osaka-originated digital regional currency ### 6. Feasibility Assessment - **Overall Assessment**: Progressing steadily, but individual goals have challenging aspects - **Consultation Target**: Considerable consultations expected through incentive systems - **Challenges in Attracting Foreign Companies**: - Insufficient educational environment for families of highly skilled foreign personnel - Delays in residential environment development - **Startup Goals**: High feasibility with the expo as a catalyst ### 7. Major Challenges - **Structural Challenges**: - Competition under Tokyo-centric environment - Shortage of advanced finance and technology personnel - Lack of specialized institutions/personnel such as rating agencies and lawyers - Shortage of fintech companies - **Competing Cities**: - Domestic: Competition with Fukuoka - International: Competition with other Asian cities ### 8. Most Critical Challenges and Countermeasures - **Urgent Challenge**: Development of residential environment for highly skilled foreigners - **Specific Measures**: - Attracting internationally recognized schools with high educational standards - Development of foreign-exclusive housing for families - **Key to Success**: Formation of foreign (highly skilled foreign personnel) communities - **Goal**: A city that is easy to work and live in for foreigners ### 9. Future Expectations - **Short-term Outlook**: Achievement of strategic goals through overcoming challenges - **Long-term Outlook**: Development into a city with international competitiveness beyond finance - **Importance**: Establishment of an international financial center in Japan outside of Tokyo This article analyzes Osaka's international financial center concept from the perspective of real estate and urban development, presenting specific challenges and solutions for realization. It particularly clearly points out that the development of living environments for highly skilled foreign personnel is the key to determining success or failure.