Fostering bonds between France and Korea

David-Pierre Jalicon

By David-Pierre Jalicon

On April 11, the French Korean Chamber of Commerce and Industries (FKCCI), the French Embassy in Korea and the city of Daegu signed an MOU to promote economic cooperation between Daegu and France.

France is a major investor in Daegu, with major companies such as Valeo, a multinational automotive supplier, and Dassault Systemes, a leader in 3D technologies, operating there.

On one side, this agreement will help to promote Daegu and its surroundings for further French investment and implantation, and on the other side, it sets the path for city-to-city collaboration with similar histories or interests, such as fostering the water and electric car industries.

The city of Montpellier, a water industry hub in France, could be a relevant partner for Daegu in this regard, as well as the northern city of Lille, which shares a common historical past of the textile industry, now transforming itself to high tech industries.

This MOU with Daegu takes place in the scope of a worldwide dynamic as regions increasingly collaborate on an international level to gain efficiencies and competitiveness. Central governments facilitate this process through decentralization and devolution of responsibilities and resources to provincial governments.

Following this trend, France and Korea have been building bridges beyond Paris and Seoul, between regions and metropolises on many levels.

For example, there are more than 400 academic partnerships between France and Korea in all regions and concentrations, such as KAIST with KEDGE Business School, major co-research projects between institutes, R&D clusters and museums.

Why is it so important to build these inter-regional bonds away from the capitals?
First, French and Korean businesses are far from being limited to Paris and Seoul. To name a few, LG in Villepinte, Hankook Tire in Lyon, Hyundai Merchant Marine in Le Havre and Amore Pacific in Chartres in France.

As for French companies operating in Korea, we can mention Technip in Geoje, Renault Samsung, Pierre&Vacances, Faurecia, Brioche Doree or Air Liquid in Busan, Veolia in Incheon, and so on.

To represent these companies and to promote the regions, it is essential to have direct bonds and clear contact points, which is why the FKCCI has been very active in fostering those links.

Last year, the FKCCI signed an MOU with the city of Busan, which is considering further cooperation with the French city of Marseille.

Secondly, inter-regional cooperation solidifies bilateral relationships, stimulates regional growth and competitiveness through knowledge, resource and competence exchanges and business facilitation.

Daegu is the latest example of the many regional partnerships that have been forged.

The regional initiatives are encouraged on a national level too.

When French President Francois Hollande met with President Park Geun-hye last November, they agreed on setting up collaboration between metropolises and regions as a priority.

To boost its regions' competitiveness and to facilitate international cooperation on a local scale, France began a new reform of decentralization in 2014.

The policy reorganizes the regions by reducing their numbers from 22 to 13 and devolving more responsibilities and competencies to them.

The regions now have higher populations, more means and greater budgets. Among other responsibilities such as transportation and territorial management, economic development, innovation and internationalization are now the priorities of the regions.

As the administrative layers are simplified with clear missions, the regions become the most relevant points of contact for international players and open paths for more productive possibilities with Korean provinces and metropolises.

As for Korea, over the last 20 years it has mostly focused on national development centered in Seoul rather than in the regions with limited decentralization policies.

As a result, 50 percent of the population lives in Seoul and its neighborhoods, which has cumulated most of the business and political activities of the nation.

However, the active development and promotion of the free economic zones and the creation of the 17 creative economy centers all over the country testify to real efforts to stimulate regional competitiveness.

The Korean structure of 8 provinces and 6 metropolises provides relevant bases for further decentralized collaboration, and the Governors Association of Korea (GAOK) has been active in promoting international cooperation.

Last December, France was the guest of honor at the annual luncheon of the GAOK where potential regional cooperation could be discussed.

As the chairman of the FKCCI, I can only encourage these trends of local cooperation that go beyond Seoul and Paris. Creating an always richer network of contact points and exchanges is vital to increase our bilateral relationships.

David-Pierre Jalicon is the chairman of French Korean Chamber of Commerce and Industry.