Financier Urges Korea to Think Globally
By Park Hyong-ki
Staff Reporter
Korea needs to open its doors wider to foreign businesses if it wants to pursue its goal of becoming a financial center and embracing globalization, said an international financier.
``In the era of globalization, Korea Inc. cannot be seen externally as being too inward-looking. Too narrowly focused. Too defensive,'' said David Eldon, non-executive chairman of the Dubai International Financial Center, in Seoul Tuesday. ``Otherwise, investment will eventually suffer. Long-term economic growth will be hindered.''
Eldon, former CEO of HSBC, made the remarks at an international conference under the theme of ``Globalization and the Korean Financial Sector,'' hosted by the Institute for Global Economics and the Washington D.C.-based Institute of International Finance.
He continued to say that it is time for Korea to overcome historical obstacles and see foreigners not as a threat but as a partner for economic prosperity.
Although Korea actively embraces globalization with free trade agreements and more foreign direct investment, ``there remains lingering perception… that it is foreigners who are reaping most of the profits from the recent bull market, while domestic investors are losing money. This perception must change,'' said Eldon.
Foreigners have often indicated that Korea's business environment lacks predictability with plenty of red tape, calling for an improvement in its regulatory and administrative systems. This is especially heightened nowadays as U.S. private equity fund Lone Star is entangled in a legal battle with prosecutors here over the fund's takeover of the Korea Exchange Bank.
The chairman stressed that Korea must gain ``international perspective'' that requires it to look beyond borders and understand different cultures and traditions.
``The first key to mastering globalization is (having the right) attitudes _ organizations hoping to succeed in a globalized world need to think globally,'' said Eldon.
He cited Dubai's complete openness to foreign investors from all levels and backgrounds as an example of success in establishing itself as a competitive financial center in the Middle East.
Korea, which boasts its attractive location as a financial hub, faces increasing challenges globally from other countries such as Singapore, Malaysia and Japan.
Singapore promotes itself as the ``Switzerland of Asia,'' Malaysia as ``a center hub for Islamic finance,'' and Tokyo as ``an enclave for investment bankers.''
To this end, the nation will have to generate a strong, well-known brand for itself and gain competitiveness by being increasingly mobile in the capital market.
``What Korea still lacks is a brand that encompasses more than just tourism,'' said Eldon. ``Korea's competitiveness will depend on the pace and scope of liberalization of the country's financial sector.''