Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
Korea seeks to double FDI
By Lee Hyo-sik
The Ministry of Trade, Industry and Energy said Wednesday it is seeking to double the amount of foreign direct investment (FDI) this year to $20 billion from 2014 to help reinvigorate the sagging economy.
Citing a number of foreign trade agreements (FTAs) signed with China and other major economies, the government will promote Korea as a strategic post for multinational companies seeking to enter China and other Asian countries.
It also plans to make more effort to encourage China and Middle Eastern countries to invest in the country’s free economic zones (FEZs), publicizing their geographical proximity, superb residential and business infrastructure, and extensive government incentives for investors.
“Following Korea’s FTAs with the EU and China, the country has emerged as an attractive investment destination for foreign investors who want to take advantage of its advanced industrial infrastructure and its geographical proximity to China and other Asian countries,” Trade Minister Yoon Sang-jick said during a Cabinet meeting, Wednesday.
“We will push ahead with measures to increase 2015 foreign direct investment to $20 billion,” he said.
Korea drew a total of $10.3 billion in FDI last year.
To achieve the goal, the ministry said it will promote the dozens of FTAs the nation has signed with major economies across the globe to encourage multinational companies to establish a presence here.
“We would like to attract at least 50 global companies seeking to make inroads into China and other Asian countries. We will draw up a list and contact each of them, asking them to set up operations in Korea,” Yoon said.
In addition, the government will ask state-run funds and private sector investors from China and the Middle East to do business in the free economic zones.
The ministry said it will remove the remaining batch of regulations hindering companies and investors from doing business in the zones.
“We will exempt non-Korean companies from being subject to the environment effect assessment and other administrative regulations when they set up plants and other facilities,” a ministry official said. “We will also allow foreign firms to freely hire non-Korean workers and extend the length of stay for foreign medical staff working inside the FEZs.”
The official said the ministry will also create advanced logistics, customs and research and development (R&D) environments for foreign businesses.
“Many multinational firms have and will set up a presence here to advance into other Asian countries by capitalizing on Korea’s FTAs. To help them do so, we would like to create a business environment that is second-to-none by offering convenient and efficient logistics, customs, IT and research services.”