Yoon charms foreign investors with pledges of deregulation, incentives

Politics

Published: 14 Feb. 2024, 18:58

Yoon charms foreign investors with pledges of deregulation, incentives

President Yoon Suk Yeol, center, poses for a photo with executives of foreign-invested companies at a luncheon held at the Korea Chamber of Commerce and Industry headquarters in central Seoul on Wednesday. [PRESIDENTIAL OFFICE]

President Yoon Suk Yeol promised more deregulation and incentives to provide the best possible environment for investors in a meeting with the executives of foreign companies in Korea on Wednesday.

"I will work to ensure that Korea is regarded as the best country in the world to do business in," Yoon said in a luncheon meeting, expressing his thanks to foreign-invested companies in high-tech industries for their contributions and believing in Korea's potential.

He noted that last year, foreign direct investment in Korea reached an all-time high of about $32.7 billion.

"As you all know, Korea lives on exports," Yoon said. "Foreign-invested companies account for 21 percent of exports and 6 percent of our employment. This can be said to be a tremendous contribution to our economy."

He noted that the employment opportunities provided by these companies are "even more meaningful because they are the high-income, high-quality jobs most preferred by young people in our country."

Yoon said it is the government's turn to give back to the companies that invested in Korea.

He pledged to spare no effort so that the government can provide various tax benefits and a more favorable system and regulatory environment "that meets, or is more advantageous, than global standards."

He said the government will work closely with the National Assembly on legal and budgetary matters to enable such a business environment.

Yoon also called on active investments from foreign-invested companies, noting that Korean companies also invest heavily in overseas markets.

"Ultimately, this creates a synergy that affects not only the Korean economy but also the Indo-Pacific and global region," Yoon said. "We hope to work together to contribute to the economic prosperity of all liberal democracies that share similar values."

President Yoon Suk Yeol, center, speaks during a luncheon meeting with executives of foreign-invested companies at the Korea Chamber of Commerce and Industry headquarters in central Seoul on Wednesday. [JOINT PRESS CORPS]

The meeting, attended by executives of a dozen foreign-invested companies, including GM Korea, Boeing, Renault Korea Motors and S-oil, was held at the Korea Chamber of Commerce and Industry in central Seoul.

James Kim, chairman of the American Chamber of Commerce in Korea (AmCham), Philippe Van Hoof, chairman of the European Chamber of Commerce in Korea, Martin Henkelmann, chairman of the Korean-German Chamber of Commerce and Industry, David-Pierre Jalicon, chairman of the French Korean Chamber of Commerce and Industry, and Kazuhiro Iguchi, head of Seoul Japan Club, were among the attendees.

Industry Minister Ahn Duk-geun briefed the executives on Korea's plans to boost foreign investments.

According to the presidential office, executives who attended the luncheon presented their opinions on preferred incentives and expanding investment in various sectors, such as finance, labor and energy.

According to the presidential office, AmCham head Kim said that Yoon's commitment to regulatory reform has significantly improved the business environment for foreign-invested companies in Korea and that there is no reason why Korea should not become a "regional headquarter" in the Asian region.

"If you point out the areas that need to be improved, I think we can create, rather than chase, a new global standard," Yoon said in his wrapping remarks at the meeting. "If Korea can establish more reasonable and desirable standards, it will become a stronger and more competitive market."

BY SARAH KIM [kim.sarah@joongang.co.kr]