By Na Jeong-ju
Trade, Industry and Energy Minister Yoon Sang-jick said on Monday that President Park Geun-hye’s visit to the United States was crucial for boosting confidence among foreign investors in Korea’s economic fundamentals despite concerns about North Korea’s nuclear threats.
“Park’s U.S. visit was a crucial opportunity for us to share our resolutions and economic visions with U.S. investors. One of the biggest achievements is that they no longer doubt that the South Korean economy is strong enough to overcome North Korea’s threats,” Yoon told reporters. “I hope their confidence in the Korean economy will lead to greater investment in Korea and stronger business ties between the two allies.”
Yoon said that seven U.S. firms, including Boeing, pledged to newly invest a total of $380 million in Korea during Park’s visit.
“Such investment pledges show that Korea is still an attractive place to do business despite lingering geopolitical concerns,” he said.
Yoon also stressed that the inclusion of 21 CEOs of small firms in Park’s business entourage had a symbolic meaning.
“There are many attractive small firms in Korea that deserve more attention from foreign investors. Park’s visit provided them with an opportunity to promote themselves to U.S. investors,” he said.
As for General Motors Chairman and CEO Daniel Ackerson’s demand that the Korean government include all bonuses paid to employees in ordinary wages, Yoon said the government will make efforts to find a solution to the issue.
Reports said Ackerson pledged to invest $8 billion in Korea on condition that the government resolves the wage issue during a meeting between President Park and American businesspeople last week.
“What I can say is that there should be a careful approach in finding a solution because it will affect firms significantly,” Yoon said. “It’s inappropriate _ and early _ to say whether GM will give up investing in Korea if the issue is not resolved.”
Yoon also hoped Park’s visit will pave the way for closer energy ties between the two countries, commenting on an agreement to jointly develop shale gas, a type of natural gas, and other clean energy sources.
Cheong Wa Dae said the energy ministers of both countries will soon sign a pact on “comprehensive” energy cooperation to exchange related technologies and information.
“That’s good for Korean energy firms which are seeking business opportunities in the U.S. I believe closer energy ties will create business opportunities for other fields as well,” Yoon said.