By Jane Han
Staff Reporter
The largest European business group here said Tuesday that it would like to accompany President Lee Myung-bak's ambitious ``747'' jumbo election pledge with its own``A380'' plan, a growth formula to help eliminate discriminatory practices against foreign investors.
Modeled after Lee's plan ― which vows to deliver 7 percent annual economic growth, double the per capita income to $40,000 a year and make South Korea the world's seventh-largest economy ― the A380 initiative combines three principles, targeting eight projects with zero corruption.
``Our plan will carry South Korea toward more prosperity and growth,'' the new chairman of the European Union Chamber of Commerce in Korea (EUCCK), Jean-Marie Hurtiger, told reporters at his first press conference since being appointed to the top post last week.
Hurtiger, who is concurrently serving as CEO and Representative Director of Renault-Samsung Motors, highlighted transparency, consistency and predictability as three principles that must be upheld to attract investors.
``No matter how well designed a country's laws may be, they will be of only limited effectiveness if law-enforcement agencies can not or do not want to enforce them fairly and consistently,'' he said, exemplifying that some local governments change their attitudes once companies make their investment.
Hurtiger went on to say that he hopes the new administration will deliver their promises into action, as the European business community has often seen pledges evaporate without results.
Among the eight projects the EUCCK proposed for improved bilateral business, the chairman prioritized Seoul's signing and ratifying of a free trade deal with the 27-member European Union, one of the world's largest economic blocs.
The two sides recently had their sixth round of talks in Seoul, but pending issues, such as tariff offers on services and automobile standards, have held back progress.
On the sticky auto issue, the business lobby group stated it supports the free trade agreement (FTA) but ``not at all costs,'' as it stressed the deal must be on par at least with the deal made with the United States.
Hurtiger also raised some issues ``that have been bothering European companies in Korea.''
He questioned why foreign investors were excluded from the newly created VIP waiting room in Incheon International Airport, arguing that they have also contributed to the country's economic growth.
The National Tax Service's new mandatory bottling requirement for imported whiskey to take effect in April 2010 was another item Hurtiger addressed.
``It is quite surprising that such an imposition, non-compatible with the World Trade Organization's obligations, could be introduced while an FTA is under negotiation,'' he said. The changes will require any imported whisky with more than 5 percent market share to perform 50 percent of its bottling process in Korea.
The European Union is South Korea's second-largest trading partner after China, with bilateral trade reaching $89.8 billion in 2007.