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MOTIE Provides Packaged Support to Foreign Companies
The Korean government will introduce an Asia regional headquarters program that provides comprehensive support to attract the regional headquarters of global companies to Korea. The government is planning a restructuring to increase the contribution of foreign investment to the Korean economy, to, in particular, job creation.
The Ministry of Trade, Industry and Energy (MOTIE) announced last Thursday that it held the third Foreign Investment Committee and finalized the 2013 Foreign Investment Promotion Policy.
According to a MOTIE official, despite continued foreign investment throughout the first quarter, there are positive elements such as better forecasts for the U.S. and Japanese economy and negative factors including the low yen. Efforts to attract foreign investment at the government level need to be enhanced, he added. The government has selected four sectors in which to focus its agenda to create quality jobs and drive the creative economy with foreign investment.
These sectors are the service sector, which delivers high-added values and creates high-quality jobs; parts and materials; financial investment, which is required for the growth of Korean small- and medium-sized enterprises; and strategic industries.
The Korean government plans to introduce the program this year, and it would provide comprehensive support, including for sites and cash benefits, for the regional headquarters and R&D centers of global companies to promote foreign investment.
To attract foreign companies in the parts and materials sector, where Korean companies are relatively less competitive, the program, which previously focused on Japanese companies, will now be expanded to the United States and Germany.
To increase investment in strategic industries, the Korean government will build additional complex-type foreign investment zones and identify Japanese companies that plan to expand in the global market by cooperating with local small- and medium-sized companies for early collaboration.
Performance-based foreign investment promotion activities such as job creation will be another focus. The Korean government will release information on the effects of FDI on employment, and investment promotion agencies including Invest KOREA will also be restructured to focus on employment.
MOTIE will hold customized promotion activities on the national level with related ministries, conglomerates, and financial agencies and promote reinvestment for regional headquarters and R&D centers from foreign companies.
The current foreign investment support will be restructured, with a focus on employment.
The Korean government will add job creation to the requirements for the designation of stand-alone type foreign investment zones, and give differential exemption of rent according to the creation of jobs for complex-type foreign investment zones. To improve the investment environment outside of Seoul, the Korean government also plans to designate complex-type foreign investment zones to cooperate with small- and medium-sized companies near conglomerates in local areas.
The restructured foreign investment incentive system will be established in the first half of the year through discussions with related agencies and experts and enforced in the second half of the year.
The Korean government will continue striving to improve the business environment by building foreign schools in Pohang and Okpo and promoting foreign education institutions in free economic zones.
The government will maintain the momentum of foreign investment despite uncertain global economic circumstances through the program, said a MOTIE official, adding that increased foreign investment into projects will contribute to Korean companies and help Korea become a global business center.
Source Text
Date
2013.05.27
The Korean government will introduce an Asia regional headquarters program that provides comprehensive support to attract the regional headquarters of global companies to Korea. The government is planning a restructuring to increase the contribution of foreign investment to the Korean economy, to, in particular, job creation.
The Ministry of Trade, Industry and Energy (MOTIE) announced last Thursday that it held the third Foreign Investment Committee and finalized the 2013 Foreign Investment Promotion Policy.
According to a MOTIE official, despite continued foreign investment throughout the first quarter, there are positive elements such as better forecasts for the U.S. and Japanese economy and negative factors including the low yen. Efforts to attract foreign investment at the government level need to be enhanced, he added. The government has selected four sectors in which to focus its agenda to create quality jobs and drive the creative economy with foreign investment.
These sectors are the service sector, which delivers high-added values and creates high-quality jobs; parts and materials; financial investment, which is required for the growth of Korean small- and medium-sized enterprises; and strategic industries.
The Korean government plans to introduce the program this year, and it would provide comprehensive support, including for sites and cash benefits, for the regional headquarters and R&D centers of global companies to promote foreign investment.
To attract foreign companies in the parts and materials sector, where Korean companies are relatively less competitive, the program, which previously focused on Japanese companies, will now be expanded to the United States and Germany.
To increase investment in strategic industries, the Korean government will build additional complex-type foreign investment zones and identify Japanese companies that plan to expand in the global market by cooperating with local small- and medium-sized companies for early collaboration.
Performance-based foreign investment promotion activities such as job creation will be another focus. The Korean government will release information on the effects of FDI on employment, and investment promotion agencies including Invest KOREA will also be restructured to focus on employment.
MOTIE will hold customized promotion activities on the national level with related ministries, conglomerates, and financial agencies and promote reinvestment for regional headquarters and R&D centers from foreign companies.
The current foreign investment support will be restructured, with a focus on employment.
The Korean government will add job creation to the requirements for the designation of stand-alone type foreign investment zones, and give differential exemption of rent according to the creation of jobs for complex-type foreign investment zones. To improve the investment environment outside of Seoul, the Korean government also plans to designate complex-type foreign investment zones to cooperate with small- and medium-sized companies near conglomerates in local areas.
The restructured foreign investment incentive system will be established in the first half of the year through discussions with related agencies and experts and enforced in the second half of the year.
The Korean government will continue striving to improve the business environment by building foreign schools in Pohang and Okpo and promoting foreign education institutions in free economic zones.
The government will maintain the momentum of foreign investment despite uncertain global economic circumstances through the program, said a MOTIE official, adding that increased foreign investment into projects will contribute to Korean companies and help Korea become a global business center.
Source Text
Source: Newsis (May 23, 2013)
** This article was translated from the Korean.