Deputy Prime Minister and Finance Minister Hyun Oh-seok said Friday that the government vowed to make the investment environment “business-friendly” through a second set of deregulatory measures for foreign-invested companies in Korea.
In a luncheon meeting with the American Chamber of Commerce in Korea, the finance minister said that improving Korea’s business environment was “critical” to ending its low growth and further attracting foreign investment.
Korea would make efforts to do this by introducing other comprehensive measures aimed at reinvigorating private investment next week. It introduced its first set of investment promotion measures in May.
Its follow-up measures are expected to include providing support or incentives to global enterprises that set up regional headquarters and research and development centers in Asia’s fourth-largest economy, Hyun said in a speech before the AMCHAM members.
The government will also improve its living environment relating to residential housing, education and welfare for foreigners as it seeks to attract overseas small and medium enterprises in the “areas of core (economic) parts” for growth, he added.
This is part of efforts to achieve an employment rate of 70 percent by creating 300,000 jobs this year and 480,000 jobs next year with growth projections of 2.7 percent in 2013 and 4 percent in 2014.
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Finance Minister Hyun Oh-seok (third from left, front row) poses with U.S. Homeland Security Secretary Janet Napolitano (second from left, front row), U.S. Ambassador Sung Kim (fourth from left, front row) and AMCHAM members including chairman Pat Gaines (far left, front row) at the end of a meeting with U.S. officials and businesspeople in Seoul on Friday. (Yonhap News) |
“We will drive foreign investment promotion policy with the focus on creating high-quality job opportunities,” Hyun said. “Deregulation is an important priority to build a business-friendly environment.”
The deputy prime minister called on foreign executives to maintain their confidence, continuously invest in the Korean economy and support the government’s 70 percent employment initiative.
He assured foreign investors that the government will continue implementing a proactive macroeconomic policy and counter rising volatility driven by uncertainties over the eurozone’s prolonged debt crisis and the possibility of China facing a credit crunch.
“When external factors cause profound market volatility, we will reinforce market stability measures,” he said.
Although Korea will leave the foreign exchange rate to be determined by supply and demand, the government will strengthen its monitoring of the financial markets and quickly “adjust its contingency plans” in response to capital-flow volatility, Hyun added.
The finance minister said that Korea seeks to find some areas in the financial sector where it has potential to grow further through deregulation, while maintaining stability.
Since the global financial crisis of 2008, Korea has mainly been prioritizing financial stability rather than pursuing to become a competitive hub in Northeast Asia.
However, with expectations of global recovery, the country could seek to renew its financial sector by focusing on “specific areas” for growth, Hyun said.
“We have to choose some areas, not (everything from) A to Z, (where) Korea might have more potential than others,” he said.
By Park Hyong-ki (
hkp@heraldcorp.com)
