On Nov. 29, 2016, I was invited
to give a keynote speech on
Korea’s FDI Policy and the
Ombudsman System at the
Spain-Korea Renewable Energy Investment
Forum held in Madrid, Spain. The Forum
was co-organized by the Spanish Wind
Energy Association (AEE) and the Korea
Trade-Investment Promotion Agency
(KOTRA) in Spain.
Spain is a strong leader in the renewable
energy sector thanks to the efforts
led by the AEE and the Instituto Espanol
de Comercio Exterior (ICEX), the country’s
investment promotion government
agency. In particular, Spain is the fourth
largest exporter of wind turbines in the
world. Exports in the last four years
added up to USD 11 billion. Spanish factories
exported 100 percent of their production
in the face of the domestic market
difficulties. 96,431 wind energy related
jobs have also been created by Spanish
companies. But the industry has recently
been facing a number of challenges.
According to a report released by the
AEE, Spain’s wind energy sector during
2012 through 2015 was hit by energy
reform and the slowdown of the domestic
market. Average revenues in the first two
years of implementation fell 23 percent,
4,651 wind jobs were destroyed in the
last four years and its contribution to the
GDP decreased by EUR 2.4 billion in
four years. Despite challenges in the
domestic market and
the unpredictable
energy reform, the wind energy sector
has been able to revamp itself. Now,
Spain publicly acknowledges the importance
of FDI in promoting exports and
GDP growth in this field.
Against this backdrop, potential foreign
investors are eager to explore investment
opportunities in the renewable energy
industry of Korea and learn about the
world’s highly revered Ombudsman system.
As the Foreign Investment
Ombudsman of Korea, I had the opportunity
to present to the member companies
of the AEE about Korea’s various
investor support services and promotion
policies. Specifically, as an independent
troubleshooting legal entity, the Office of
the Foreign Investment Ombudsman provides
various Ombudsman’s services
including grievance resolution process,
one-stop consulting services for foreign
investor and an online regulatory information
portal service where foreign
investors can submit suggestions for regulatory
improvements. As a result, such
Ombudsman’s services have contributed
to enhanced transparency and predictability
of regulations in Korea.
At the forum were potential foreign
investors, the member companies of the
AEE and government officials. This
event received positive responses from
Spanish companies involved as they
have
come to better understand and realize the
importance of investment and regulatory
reforms. In this light, a large number of
potential foreign investors applauded the
Ombudsman’s regulatory information
service. They also praised Korea and
KOTRA’s efforts to attract significant
FDI into the country.
The forum was especially helpful for
potential investors as they sought to
invest in the Korean market. For example,
potential investors like Iberdrola,
GPC, Enerside and Arborea Intellbird
SL-Aracnocoptero, expressed their keen
interest in investment in the renewable
energy sector in Korea and requested further
information about investment incentives.
I believe this forum has provided the
ideal platform for the members of the
AEE and potential foreign investors to
uncover the various investment opportunities
in Korea. Exports in the Spain wind
energy sector have strengthened thanks to
growing global demand for wind turbines
and its components. I hope that Spain’s
trade and investment in the renewable
energy industry will continue to increase
and the economic ties between the two
countries will be stronger. All in all,
appropriate investment incentives and
regulatory reforms are absolutely needed
for attraction of FDI.
