By Kim Jae-won
Scotland is seeking to attract Korean firms’ investment in the country’s renewable energy project in exchange for sharing its advanced technology in the environmental sector, according to the European country’s finance minister.
In an interview with The Korea Times Friday, John Swinney, finance minister of Scotland, said that his country is ready to share its advanced technologies in the eco-friendly sector with Korean investors and to offer tax advantages.
“I encourage Korean investors to look at Scotland as a market to invest,” he said.
Scotland aims to have all of its electricity from renewable energy resources by 2020 by attracting more investment from abroad.
He said Korean companies can learn technologies and skills in renewable energy, such as offshore wind, wave and tide, from its prestigious colleges including Strathclyde University and the University of Edinburgh.
Swinney said that Korean companies can benefit from various tax benefits available for foreign investors. The country applies 10 percent corporate tax rates to foreign investors doing businesses related to patents or research and development, well below the 24 percent levied against its domestic firms.
“There are eight designated areas in different parts of Scotland across a range of key renewable energy sites, which provide deductions in tax rates.”
The finance minister, who is also in charge of employment and sustainable growth industries, said a couple of Korean companies such as Doosan, Samsung, Korea National Oil Corp. (KNOC) and E-Land have already been investing in the nation’s industries.
Doosan Heavy Industries and Construction and Samsung Heavy Industries have invested in the nation’s offshore wind power project, while KNOC is gearing up to invest in the North Sea gas sector by acquiring Scottish oil company Dana Petroleum in October 2010 for $2.6 billion. E-Land, a mid-tier Korean clothing company, also invested in some Scottish textile companies last year.
Swinney said European countries suffer from difficulties in lack of capital and investment, and countries like Korea, which have financial capabilities, can help the struggling continent by investing there.
“And frankly investment capabilities rely on countries like Korea. Therefore, part of reason why I came Korea is to encourage Korea to help Europe through investment.”
The minister said another purpose of his visit was to promote the nation’s products in Korea, especially its trademark whisky. The Scottish government seeks to increase its presence in Korea by boosting sales of whisky, which have declined over the past few years.
According to the Korea Alcohol and Liquor Industry Association, sales of whisky marked 110 kiloliters in January, down 57.9 percent from a year ago.
He said that the country will focus on authenticity and quality of the liquor to regain sales momentum. “Promotion of Scotch whisky will focus on quality and authenticity, whose values are very important and significant.”
Swinney is one of the most-influential figures in Scotland’s nine-member cabinet together with First Minister Alex Salmond. Scotland is seeking full economic and political independence from the rest of the United Kingdom, planning a national vote on the matter in the autumn of 2014.
The finance minister said his impression of Korea was its fast-moving society. He also commented on the magnificent cherry blossoms, which he enjoyed during his first visit to the country.