Seoul urged to offer level playing field for foreign firms

European Chamber of Commerce in Korea (ECCK) Chairman Dimitris Psillakis speaks during a press conference unveiling the organizations White Paper 2019 at the Four Seasons Hotel in Seoul, Friday. / Yonhap

By Kwak Yeon-soo

The European Chamber of Commerce in Korea (ECCK) has urged the government to ease business regulations and give equal treatment to foreign companies operating here, the association said Friday.

ECCK members expressed disappointment with Korea's “double standards” in treating foreign companies, warning that the country needs to avoid discrimination and give them the “same chance” as domestic firms in public procurement.

At a press conference to unveil its fifth ECCK White Paper, the business lobby group said the number of issues and recommendations it was making to the government had risen to 180 from 123 a year ago.

“Many rules and regulations affect foreign and domestic business, but they change too quickly without adequate input from stakeholders,” ECCK Chairman and President and CEO of Mercedes-Benz Korea Dimitris Psillakis said.

“Sometimes policies change without an adequate evaluation on whether the new ones have the desired effect without unintended consequences.”

He stressed that fairness and mutual respect would lead European companies to increase investment and create more jobs in Korea.

European Union Ambassador to Korea Michael Reiterer, who also attended the meeting to congratulate the ECCK on publishing the White Paper, called on the government to pay more attention to the EU.

“Despite the fact that EU is Korea's large, stable and like-minded trade partner, we often feel we don't get the attention we deserve,” Reiterer said.

“We're not looking for special benefits or privileges. We want Korea to realize that the EU plays an important role in trade relations.”

Representatives of ECCK industry committees shared their opinions on how regulations hinder them from driving innovation and fostering businesses in Korea.

The ECCK Healthcare Committee Chairman and GSK Korea VP and General Manager Julien Samson said regulations prohibit drug makers from using new equipment even in the R&D process.

“What we're seeing is a big risk of Korea falling behind other countries in terms of innovation,” Samson said. “We'd like to see more modernization of Korea's regulatory policy so that it aligns with global standards.”

The ECCK Food Committee and Nestle Korea CEO Karsten Kuehme echoed that Korean regulations differ greatly from global standards.

“There are cases in which foreign companies need to either impose higher price or downgrade the quality of their products,” Kuehme said.

ECCK members also met with Trade Minister Yoo Myung-hee on the same day to discuss ways to boost bilateral ties and improve business conditions.

Yoo promised that the government will continue to make efforts to improve local policies that will enable foreign companies to better contribute to innovation-led growth.

“We would like to ask the ECCK and its members to help promote investment from European firms, especially in the material parts and equipment segments,” Yoo said.