Expat business leaders extol deputy prime minister's briefing
By Kim Tae-jong
Hyun Oh-seok
Chiefs of foreign corporations here spoke highly Wednesday of the government’s recent efforts to improve the country’s investment environment.
“We were very pleased to have a frank dialogue with Deputy Prime Minister Hyun today on how the government can achieve its goal of making Korea a more attractive investment destination,” said Amy Jackson, president of the American Chamber of Commerce in Korea (AMCHAM), after a luncheon meeting with Deputy Prime Minister and Strategy and Finance Minister Hyun Oh-seok at Lotte Hotel in downtown Seoul.
Hyun reportedly pledged to make Korea “a country where more foreign investors are eager to invest,” as he explained the current status of the Korean economy and the government’s future policy directions.
Jackson also welcomed the Korean government’s effort to improve its consultation with the foreign business community when designing new policies, adding, “We hope that this will continue at all levels of government, especially as Korea launches its new deregulation initiative.”
The event brought together 16 representatives of foreign business communities including AMCHAM, the European Chamber of Commerce in Korea (ECCK) and CEOs of foreign-invested enterprises.
It was in line with the government’s ongoing efforts to attract more foreign investment. President Park Geun-hye also had a meeting with foreign business leaders at Cheong Wa Dae on Jan. 9, where she also pledged to lower entry barriers for foreign investors to the level of most advanced countries, and provide diverse incentives such as tax exemption and subsidies.
Citigroup Korea Chairman Ha Yung-ku said the luncheon meeting was “pleasant,” as participants and Hyun freely exchanged ideas and opinions.
“The atmosphere was very nice,” Ha said. “Hyun sought opinions from guests and tried to answer concretely. He also promised to try hard to narrow the gap between the government’s policies and what’s happening in the real world.”
ECCK President Thilo Halter also said the meeting was “fruitful,” positively evaluating the government’s initiatives to further improve the business environment.
He also suggested frequent and open communication with the government to improve the predictability of the business environment.
Hyun said the Korean economy is showing strong signs of recovery backed by the government's policies including its fiscal stimulus last year and forecast that the Korean economy will grow 3.9 percent this year.
He also noted that the current state of foreign investment is at a “discouraging” level, given the country’s economic status.
“Currently, accumulated foreign-investment until 2012 is about 13 percent of Korea's total GDP. The percentage is somewhat discouraging, compared to other OECD countries. However, foreign-invested companies account for 20 percent of Korea’s exports and 6 percent of its total employment,” he said.
He also stressed that Korea has more to offer to foreign-invested enterprises than what it receives from them, citing a “talented labor force, excellent business infrastructure and the Korean government's strong commitment.”
“As President Park noted, the Korean government will create the most investment-friendly environment in Korea. We hope all the foreign-invested companies here do not feel any more inconvenience than they do in their home country,” Hyun said.