Chilean embassy highlights Chile’s business, investment environment

  Chile is a Latin American hub that serves as a regional platform with global access and more free trade and tax agreements than any other country, Chile Investment (InvestChile) Commissioner for Asia Vicente Pinto said during the second edition of the Global Biz Forum held in Seoul on June 15.

InvestChile is a decentralized agency under the Ministry of Economy, Development and Tourism in Chile.

Explaining key businesses, investment opportunities in Chile and collaborative sectors, Pinto highlighted Chile’s potential.

The investment commissioner said that free trade agreements allow privileged tariffs with countries and regions that account for 88 percent of global gross domestic product.

Chile ranked 34th in the World Bank’s Logistics Performance Index in 2018. Pinto highlighted Chile’s 17 airports and 17 port facilities, providing access to 4.3 billion consumers.

“Chile has agreements to avoid double taxation with 33 economies,” he said, citing Chile as the World Economic Forum’s most competitive nation in Latin America since 1998, and one of the most attractive markets in the region for foreign direct investment.

He said that Chile is listed as a No.1 country in South America by the WEF, for its high business environment ranking, economic freedom and GDP per capita income.

Pinto emphasized that Chile offers a pro-business environment with a robust foreign investment regime; equal treatment of foreign companies; and free flow of capital and profits.

He expressed the Chilean government’s commitment to boosting investments made by foreign companies based in Chile, and to facilitating equal rights for foreign companies in the country.

National legislation allows the entry and repatriation of capital without fees, and a simple tax structure allows companies to be set up easily, he stressed. He applauded the pro-investment agenda of Chile’s former President Sebastian Pinera.

“The Chilean financial sector is among the most developed in the world,” Pinto said.

Pinto cited Chile as a data center hub for South America with fiber optic infrastructure dedicated to North America and the trans-Pacific. He also highlighted Chile’s recent deployment of a 5G network, smart devices, AI technology, and an updated digital ecosystem.

Pinto outlined Chile’s energy policies, and benefits the Chilean energy sector could provide for potential investors. 

According to Pinto, Chile’s installed electricity capacity is currently 26 gigawatt hours with broad political agreement on regulatory and environmental matters.

Pinto said that by 2040, Chile will close all coal power plants.

Chile has the potential to provide the cheapest green hydrogen, he said, citing a 2020 McKinsey & Company report.

“Chile´s green NH3 (ammonia) is the most competitive source,” Pinto highlighted.

‘Dynamic’ Chile-Korea relations

Delivering welcome remarks at the forum, Chile charges d`affaires ad interim in Korea Gustavo Gonzalez thanked the CEOs for attending the forum and congratulated Korea for 60 years of Chile-Korea bilateral relations on behalf of the Chilean government.

“Although Chile-Korea relations are dynamic, the recent assumption of Chilean President Gabriel Boric’s administration -- the youngest head of state in Chile’s history -- will bring fresh ideas,” the ambassador said.

“Our bilateral relationship will be boosted even more, a dynamic and young relationship,” he said.

According to charges d`affaires ad interim, the Chile-Korea relationship is dynamic, because it contemplates all aspects of the close friendship countries can develop such as comprehensive trade and high cooperation in clean energy, protection of the environment, promotion of human rights, respect for international agreements and search for peaceful settlement of disputes.

“The latter acquires greater relevance today, in light of the terrible events in Ukraine,” he stressed.

According to Gonzalez, Chile offers business opportunities in infrastructure, energy, mining, agro-tech and the digital economy.

“This dynamism is not limited to the governmental level, is covers the private sector,” he said.

“Korea is our fifth largest trading partner, with a bilateral trade of $6.5 billion,” he said, adding Chile’s private sector seeks to expand and deepen trade in goods, services as well as investments.

Chile and Korea were affected by disruptions of global chain supplies amid COVID-19 and the Russia-Ukraine war. Both countries are seeking finding proper ways to effectively resolve these disruptions, Gonzalez said.

He stressed that the Chilean Embassy will promote science and technology to strengthen bilateral relations with a focus on energy and green hydrogen.

According to Gonzalez, a memorandum of understanding signed between the South Korean Ministry of Trade, Industry and Energy and the Chilean Ministry of Energy in November 2021 is a milestone to continue cooperation, promote investment and exchange expertise.

Gonzalez recommended the southern regions of Chile as the best tourist destinations, citing Torres del Paine national park as a great natural attraction.

Gonzalez extended gratitude to all attendees, which included co-host The Korea Herald and sponsors such as the Korea Chamber of Commerce and Industry, construction material maker Eagon and green energy developer OCI Co. for their support of Chile Day.

“Invest in Chile,” the ambassador urged the CEOs, saying Chile is waiting for Korean investors.

Meanwhile, Eagon Executive Vice President Baek O Hyun discussed Eagon’s three-decade journey with Chile, its business operations, and its corporate social responsibility activities in Chile.

By Sanjay Kumar (sanjaykumar@heraldcorp.com)