Kaohsiung Special Zone's Asset Management Business Gradually Expanding Nationwide, FSC to Explain Special Law by End of July

(Central News Agency reporter Su Ssu-yun, Taipei, 11th) FSC Chairman Peng Jin-lung recently explained that as of the end of March this year, the asset management scale (AUM) of the Kaohsiung special zone reached NT$455.9 billion, with 3,736 clients. The FSC stated that after the launch of the Kaohsiung special zone, financial institutions have accelerated the establishment of talent and systems, and some mature businesses will gradually be expanded for nationwide application. The direction of related special laws is expected to be announced by the end of July.

The Legislative Yuan's Finance Committee today reviewed the FSC's budget for fiscal year 2026 and conducted inquiries. Kuomintang Legislator Lai Shyh-bao expressed concern that the Kaohsiung special zone primarily promotes services for wealthy individuals, including family offices, and questioned how it will continue to be promoted in the future, emphasizing that it should not be perceived as a policy solely for the rich.

Peng Jin-lung said that high-net-worth business is only one part of the Asian asset management center, not the entirety. For example, the Taiwan Individual Savings Account (TISA), launched in July 2025, is available to the general public. Taiwan's overall AUM has grown by NT$8 trillion in the past two years, increasing to NT$40.63 trillion by the end of March. The goal is to double Taiwan's AUM from US$1 trillion to US$2 trillion within six years. Facing decades of development in Hong Kong and Singapore, Taiwan must catch up quickly.

Democratic Progressive Party Legislator Lai Hui-yuan was concerned about whether 21 banks investing in high-net-worth business, with approximately 23,000 clients (averaging just over 1,000 per bank), could sustain market development.

Peng Jin-lung pointed out that the current AUM scale is certainly insufficient and has room for growth, but considering the timeline for Taiwan's opening of private banking services, the client growth rate is acceptable. He expects that as the Kaohsiung special zone can offer services previously unavailable in Taiwan, the number of high-net-worth clients will continue to increase.

Peng Jin-lung first revealed at the 2026 County and City Policy Briefing in Kaohsiung on the 9th that the Kaohsiung special zone was launched in July 2025. As of the end of March 2026, the Kaohsiung special zone had 3,736 clients and an AUM of NT$455.9 billion, with results exceeding expectations.

Regarding the next stage of the Kaohsiung special zone's development, Peng Jin-lung explained that higher-risk businesses will be piloted in the Kaohsiung special zone. As financial institutions' talent and systems become complete, some mature businesses will gradually be relaxed for nationwide implementation.

In addition, under the current FSC supervisory framework, if there is no insurance interest, trust fiduciaries generally cannot directly purchase insurance policies for beneficiaries. Legislators expressed concern about this regulatory barrier. Peng Jin-lung said that in addition to investment products, insurance also plays a role in wealth transfer, and he has asked the Insurance Bureau to study the feasibility of introducing international experience.

The Kaohsiung special zone will celebrate its first anniversary in June. The FSC explained that it will subsequently consolidate feedback from private banking, family offices, and international banking unit (OBU) wealth management business workshops. It is expected to announce which Kaohsiung special zone businesses will be expanded nationwide and the direction of the special law by the end of July. (Editor: Pan Yi-ching) 1150511

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