Korea aims to lure $15 bil. in FDI this year

Korea aims to attract more than $15 billion in foreign direct investment (FDI) in 2011 by improving local business conditions in the green energy, services and industrial components sectors, the government said Monday.

The Ministry of Knowledge Economy said the target represents a 15 percent gain from an estimated $13 billion worth of FDI secured last year, with Seoul planning to offer more incentives and revamp local business regulations.

Incentives include cash grants and assistance to procure necessary land, along with more comprehensive overseas investment relations efforts to highlight the advantages of doing business in the country, the ministry said at a foreign investment committee meeting.

Seoul has set aside 14.0 billion won ($12.4 million) worth of funds that can be given as direct cash grants this year, compared to just 3.1 billion won in 2010.

Foreign businesses will also be eligible to receive various tax and administrative-related support if their investments in the manufacturing sector exceed $10 million. Similar breaks will be offered for foreign investments in the distribution service sector that surpass $5 million.

The ministry said concentrated effort will be made to attract FDI in 135 "target areas" in the green energy, biotech and information technology convergence industries, with investments also being sought in parts and materials industries and large distribution services.

The ministry said redoubled efforts will be made to lure investments from emerging economies in Asia and the Middle East along with countries such as Russia and India.

It added the planned ratification of free trade agreements with the United States and European Union could help increase inbound investment that might bolster business and job opportunities and fuel economic growth. (Yonhap)