Osaka has proposed a special zone framework utilising the government’s financial and asset management special zone programme to promote the concentration and enhancement of financial and asset management services alongside the development of growth sectors. The city is positioning itself to maximise its economic power and strategic location while harnessing the momentum of the Osaka-Kansai Expo 2025.
What are Japan’s Financial and Asset Management Special Zones?
In June 2024, the Financial Services Agency (FSA) designated four regions – Hokkaido, Tokyo, Osaka, and Fukuoka – as “Financial and Asset Management Special Zones.” This initiative aims to create a “virtuous cycle of growth and distribution” by accelerating capital flows through asset management reforms. These designated regions receive special regulatory exemptions and support measures to attract new domestic and international investments, fostering the development of both financial services and regional industries.
The Special Zones programme advances three key objectives:
1. Attracting domestic and international financial and asset management operators
- English-language administrative procedures (commercial registration, social insurance, etc.)
- Creating new residence status for foreign investors investing in startups
- Support for opening bank accounts for foreign nationals
2. Supporting regional growth industries through financial and asset management operators
- Easing investment regulations for bank groups’ specialized investment subsidiaries in startups
- Relaxing regulations on qualified investors who can invest in professional venture funds
3. Promoting and nurturing growth industries
- Promoting acceptance of overseas talent (GX, fintech, etc.) through the Highly Skilled Professional Points-based System
Beyond financial services, the programme implements regulatory reforms and operational initiatives encompassing business environments, living conditions, and target industries for investment.
Each of the four designated regions has established unique concepts and visions leveraging their distinct characteristics, promoting initiatives in collaboration with a broad range of stakeholders.
Osaka’s Strategic Vision and Implementation
The Global Financial City OSAKA strategy focuses on creating an environment where continuous innovation thrives, carrying forward the legacy of Expo 2025 into the future. It aims to implement regulatory reforms aligned with global standards to attract foreign investment and strengthen financial functions in the region. These efforts are being driven by the “International Financial City OSAKA Promotion Committee,” established in March 2021. The committee, which now comprises 40 organizations as of February 2024, represents a collaborative effort between industry, academia, and government institutions.
Future Outlook
The immediate focus is on attracting talent, businesses, and capital from Asia and worldwide while building a concentrated ecosystem of investment-ready startups. This initiative represents Osaka’s commitment to transforming into a major international financial center while fostering innovation and sustainable growth, as part of Japan’s broader strategy to enhance its financial markets through the Special Zones programme.
