Moon reaches out to foreign investors

Ahn to give up Assembly seat to focus on election

By Kim Hyo-jin

Democratic Party of Korea (DPK) presidential candidate Moon Jae-in vowed Wednesday to provide “maximum” support for foreign investors, if he is elected.

“I promise as much support as possible for foreign investors to help them do business in a better environment and attract their investments,” Moon said during a speech at a meeting with leaders of the American Chamber of Commerce in Korea and the European Chamber of Commerce in Korea.

Moon’s pledge came as security concerns on the Korean Peninsula are deepening due to North Korea’s nuclear development and the U.S.’s increasingly confrontational stance.

“I have confidence in reviving the Korean economy. You will have the best chance of investing in Korea,” he said.

Moon pointed out the country’s foreign direct investment rate falls short of the average of the Organization for Economic Cooperation and Development member nations, calling “heavy regulations, inflexibility in the labor market, and concerns about violations of intellectual property rights” as major stumbling blocks.

Stressing the need to renew business policies, he vowed to seek deregulation, administrative transparency and policy consistency.

“I will adopt the principle of encouraging autonomy and minimum regulations,” he said. “I’m determined to create an innovative investment environment so you’d choose Korea before any other country in the world.”

He continued, “I will make sure of better defending national security with closer cooperation with our allies, especially based on the strong alliance with the U.S.”

Earlier in the day, Moon unveiled his economic policy, centered on fiscal expansion aimed to stimulate the country's staggering economy.

In the plan, nicknamed “J-nomics,” he vowed to increase the country’s fiscal spending to an annual average of 7 percent, from an average of 3.5 percent year-on-year.

Though he said the spending will come from a natural rise in tax revenue over a five-year period, he still did not rule out the option of tax hikes.

“I will pursue this plan in a way to keep any increases in national debt as low as possible. Fifty trillion won will be financed from a natural rise in five-year tax revenue,” he said during a press conference at the DPK’s building.

“If short, I will cover it with adjusting the effective rate of corporate tax, expanding policy funds, and reducing unnecessary state projects. If still short, I intend to seek public consensus for a tax rise.”

Moon also vowed to have a supplementary budget drafted once a new government is formed. But he did not specify its amount.

Questions remain whether he can get an envisioned budget bill passed with the approval of warring camps in the National Assembly. Given the DPK holds 119 of 300 Assembly seats, even if Moon takes office, it is inevitable to require cooperation with the opposition parties.

Meanwhile, Moon’s rival Ahn Cheol-soo of the People’s Party made a bid to attract more support, deciding to “give up his parliamentary seat when registering his candidacy on April 15.” “Ahn views it as responsible to do so as a presidential candidate,” an aide said.

Later in the day, Ahn met with university students at Korea University and pledged to create a new business structure in preparation for the Fourth Industrial Revolution.

The IT expert-turned-politician promised he will create jobs and revitalize the labor market, mindful of young voters concerned about the soaring unemployment rate and job insecurity.