KORUS FTA crucial in resolving alliance challenges

The environment for foreign businesses in South Korea has improved remarkably over the last decade, to meet global standards, and the ratification of the Korea-U.S. Free Trade Agreement (KORUS FTA) will be crucial in resolving future challenges in the business climate and the Korea-U.S. alliance, the outgoing CEO of Boeing Korea said.

William C. Oberlin
Former President of Boeing Korea

By Jung Sung-ki, Cathy Rose A. Garcia
Staff reporters

The environment for foreign businesses in South Korea has improved remarkably over the last decade, to meet global standards, and the ratification of the Korea-U.S. Free Trade Agreement (KORUS FTA) will be crucial in resolving future challenges in the business climate and the Korea-U.S. alliance, the outgoing president of Boeing Korea said.

In an interview with The Korea Times on July 28 at his office in central Seoul, William C. Oberlin, 66, expressed “mixed emotions” about ending 23 years of living in Korea as an American businessman.

Oberlin worked with the U.S. aerospace giant Boeing for 25 years and has been president of Boeing Korea since 2002. He also served as chairman of the American Chamber of Commerce (AMCHAM) in Korea between 2003 and 2004, and again between 2007 and 2008.

“Somebody pointed out you have a lot of friends in Korea. I said yes, and you know, I have more friends in Korea than probably I do in the United States. So that’s the sad part,” Oberlin said. “The more exciting part is you go through phases of your life. I’m moving into another phase of my life, so it’s exciting.”

Oberlin has personally witnessed Korea’s brisk economic, political, cultural and social transformation throughout the decades. In particular, the business climate for foreign corporations in Korea has improved dramatically, he recounted.

“Looking back on those days of 10 to 15 years ago, the challenges were many, and they were much, much more difficult to overcome than we look at today,” he said. “Ask anybody who was here 10 or 15 years, and they will tell you that Korea is a far different place and a far better place to do business than it was before.”

The Asian financial crisis in the late 1990s was the turning point for the Korean business environment to rapidly evolve and respond to the challenges, he noted.

“You can point to the exact time when there was a reversal in the business climate in Korea, and that was the Asian financial crisis, what we called the IMF crisis,” Oberlin went on to say. “Before, Korea was rather restrictive and prohibitive in many of the business sectors that were trying to do business in Korea. After or during the IMF crisis, Korea realized that they had to change, and Korea changed quickly.”

To attract foreign direct investment, Korea put an emphasis on improving the business climate for foreign companies in Korea, and that effort also helped the business environment for domestic firms, he said.

There were policy changes for foreign enterprise and a relaxation of regulatory controls.

“We used to be briefing incoming American diplomats that this is the worst place to do business in all of Asia, but within 10 years, we’re briefing them now this is the best place to do business in Asia,” said Oberlin.

“There are still challenges from an American point of view and the challenges are wrapped up in the KORUS FTA.”

If the U.S. and Korean governments pass the trade deal, which has been put on hold since 2007, the challenges could be resolved, and they can take a big step forward to build a strategic alliance that covers the aspects of politics, society, culture and the economy beyond the traditional security domain.

“I’m very happy that President Obama has announced a plan to represent the Congress, and my personal hope is that it will be done within about the next six to eight months,” he said.

The landmark free trade agreement was signed in June 2007 between the previous administrations of Presidents Roh Moo-hyun and George W. Bush. However the trade pact has been languishing with some U.S. government and congressional leaders concerned about the possible negative repercussions to their auto and beef industries.

As a former chairman of AMCHAM, Oberlin made a lasting impact as the organization achieved “three milestones” during his tenure: the Korea-U.S. visa waiver program, the KORUS FTA, and elevating Korea to the NATO-level status in foreign military sales (FMS).

“We can definitely tell that the current Obama administration has recognized that Korea is not only a part of the alliance. If you just step back and think about it, and look at Asia, Korea is our best friend,” he said.

If there’s one thing that Oberlin has learned to appreciate about Korean culture, it’s the importance of building meaningful relationships and close friendships.

“Somebody told me, Korean ‘ships’ are always important — relationship and friendship... So that’s what I tell people from the U.S., when they deal with Koreans and how to be effective in Korea, they have to work the relationships. They have to be cognizant of the ‘ships’ and the rest will fall later on,” he said jokingly.

“In the two decades I’ve lived in Korea, I’ve never felt like a stranger. I’ve always felt like I was always a part at some level of Korean society. That’s the hard part because I’m leaving behind a lot of friends and memories,” he said.

Asked about his plans as a retiree, Oberlin is leaving for Hawaii and confessed he doesn’t have any concrete plans after the first six months, but he will not likely spend a lot of time surfing or golfing.

“My wife scared me the other day because she is thinking of going back to school at the University of Hawaii... I though ‘uh-oh,’ because if she goes to school, I get to take care of my daughter. I will become the number one chauffeur,” he said, with a grin.

Since joining The Boeing Company in 1985, Oberlin has held various management positions including Korea country manager of Boeing Commercial Airplanes, Asia-Pacific international business development director of Boeing Space and Communications Group, Southeast Asia regional sales director of Boeing Rotorcraft and regional sales and marketing manager for Far East Helicopter Sales.

Oberlin is a decorated US Air Force combat pilot having served in various operational flying and staff positions.