Future of Korean FDI: quality over quantity
The government is planning to shift its strategy to attract foreign direct investment, focusing on quality and not volume, according to an announcement yesterday.
“Since the financial crisis in 1998 the Korean government’s goal in attracting foreign investment was to stabilize the foreign exchange market while increasing foreign reserves,” said Lee Dong-geun, deputy minister of knowledge economy, yesterday.
“But now we’re considering changing our target, by attracting foreign investment that will help improve our economy, spending on green growth and new growth engines.”
Lee added that the government would move to change regulations so foreign investment, now skewed heavily toward Korean manufacturers, can be turned toward the service industry, which tends to create more jobs.
Deputy Minister Lee was participating in a press conference about the Foreign Investment Forum, organized by the Korea Trade-Investment Promotion Agency, which will take place from Wednesday through Friday at the Grand InterContinental Hotel.
A total of 191 investors from 164 companies in 16 countries will participate in the largest forum since 2007. Activities will be centered on green growth industries including LEDs, fuel cells and wind power.
Foreign direct investment in Korea has remained in good condition compared to other economies. The figure here rose 8.1 percent in the first nine months from the same period last year, but the United States in the first half saw FDI plunge 68.8 percent on-year. In Japan, incoming spending in the first half was down 56.5 percent, while Taiwan shed 51.3 percent on-year. Investment in China from January to August fell 17.5 percent compared to the same period last year.
“Next year it won’t easy for Korea, with the eyes of the world fixed on the country that will be hosting the G-20 summit,” said Kotra President Cho Hwan-eik.
By Lee Ho-jeong [firstname.lastname@example.org]