By Na Jeong-ju
Staff Reporter
President Lee Myung-bak pledged Thursday to expand cash grants, reduce taxes for foreign investors and increase flexibility in the labor market as part of bold measures to attract more investment.
``Korea will offer as many incentives as possible to foreign firms investing here,'' Lee said at a New Year's reception for overseas investors at the Shilla Hotel in Seoul. ``I assure you that I will continue to implement foreigner-friendly measures so that you will be successful in Korea.''
Lee said his administration would remove disadvantageous rules for foreign firms to turn the country into ``a place where domestic and foreign firms are treated fairly and equally.''
Taxes will be cut and more cash grants will be offered for foreign investors, while a series of steps will be taken to ensure a more flexible labor market, the CEO-turned-president said.
``These measures will help Korea become one of the most open economies in Asia,'' Lee said. ``We will be able to sign free trade agreements with India and the European Union in the first half of this year. We also expect the National Assembly to ratify the Korea-U.S. free trade accord this year.''
``Trust me. Trust the vast potential of the Korean market. Invest in Korea now,'' Lee said.
Lee discussed economic issues with the representatives of foreign business communities. Participants included American Chamber of Commerce in Korea (AMCHAM) Chairman David Ruch, European Chamber of Commerce in Korea Vice President Hans-Bernhard Merforth, U.S. Ambassador to Korea Kathleen Stephens and Korea Exchange Bank President Richard Wacker.
Michael Grimaldi, president of GM Daewoo, the South Korean unit of General Motors Corp., and Chevron Korea President Bob Edwards also attended the meeting.
President Lee said Korea posted an increase in foreign direct investment last year for the first time in four years despite the global economic downturn.
``This year, it is forecast that foreign direct investment will decrease by 15 percent worldwide. However, I believe foreign investments into Korea will continue to increase,'' Lee said.