Trade minister tries to ease foreign concerns over NK risks
Minister of Trade, Industry and Energy Joo Hyung-hwan, second row fifth from right, poses with heads of foreign companies and local representatives of foreign business associations after a meeting at The Plaza Hotel, Seoul, on Thursday. / Yonhap
By Lee Hyo-sik
The government will promptly provide foreign businesses with information on North Korea and take other steps to ease their concerns over rising geopolitical risks, following the North’s latest nuclear test and rocket launch, the trade minister said Thursday.
Minister of Trade, Industry and Energy Joo Hyung-hwan also said that the government will extend larger financial and other support to non-Korean firms investing in energy, advanced materials and other newly emerging industries.
“The government will offer accurate information regarding North Korea in a swifter manner to prevent any misunderstanding among non-Korean companies,” said Joo at a meeting with heads of foreign companies and representatives of foreign business associations here.
“We do not want the foreign business communities to be discouraged by what has been happening north of the border. We will do everything we can to help companies invest and hire workers,” the minister said.
Joo has vowed to remove legal, administrative and other regulations, which many have been thought to have hindered foreign investment. He stressed that the government will offer greater incentives, including research and development grants, to non-Korean enterprises that invest in areas of new businesses.
“Despite lingering geopolitical risks and other unfavorable factors, Korea still remains one of the most attractive countries for doing business,” the minister said. “The government will double its efforts to transform the country into a more business-friendly and appealing place.”
Joo said he will hold meetings with foreign business leaders every six months to hear their concerns and reflect on them in policies.
At the Thursday meeting, the participants asked the minister to increase state grants for foreign companies that expand investment, and simplify the customs procedures, among others.
In response, Joo promised to revise eight regulations to enlarge foreign investment districts and prolong the visa program, which offers residency to non-Koreans investing in real estate properties.
“We expect foreign direct investment (FDI) to exceed $20 billion this year again,” the minister said. “We would like the foreign business community to work with us to attract investment from overseas.”
In 2015, foreign companies filed with the government to invest $20.9 billion in Asia’s fourth-largest economy, up 10 percent from $19 billion in 2014.