Amcham report calls for eased regulations in 9 sectors to lure companies

Industry

Amcham report calls for eased regulations in 9 sectors to lure companies

Published: 30 Jul. 2024, 16:50

SARAH CHEA
chea.sarah@joongang.co.kr

James Kim, the chairman and CEO of the American Chamber of Commerce in Korea (Amcham), speaks during an interview with the Korea JoongAng Daily at its headquarters in Yeouido, western Seoul, on March 19. [PARK SANG-MOON]

The American Chamber of Commerce in Korea (Amcham) released a report urging Korea to ease regulations in nine key business sectors such as defense and automobiles to increase the country's appeal for global companies.

The Business Environment Insight for 2024 report specifically highlighted the sectors in which Korean and U.S. firms have deep alliances, and includes an analysis on the difficulties of running businesses in Korea. The nine sectors are defense, agriculture, automobiles, alcoholic beverages, energy, the digital economy, financial services, chemicals and pharmaceuticals.

In aerospace and defense, Amcham called for streamlining Korea's procurement process, such as offset policies, to make them more predictable in line with global standards.

The business lobby also suggested easing regulations on TV commercials for food and alcoholic beverages, adding that the excessive policies and approval process pose challenges for overseas firms operating in Korea.

The report also mentions that Korea's unpredictable rules and taxation in EVs and car safety may hinder its growing partnership with U.S. automakers. Korea's auto exports to the United States surged by nearly 45 percent last year.

Other suggestions include regulatory reform in digitization and data security to increase predictability in an effort to make Korea a financial hub in the Asia-Pacific region.

The latest report follows Amcham's recent publication of the “Korea as an Asia-Pacific Regional Headquarters Report” in March, in which it suggested regulatory reform to elevate Korea's competitiveness as a regional business hub. Amcham also sent the report to President Yoon Seok Yeol.

"The U.S.-Korea economic relations are at an all-time high in terms of trade and investments, with increasing opportunities for strategic industrial collaborations," said Amcham Chairman James Kim. "The policy suggestions highlighted in the report, once implemented, will create a level playing field for both foreign and domestic businesses in Korea, and deepening the vital bilateral trade and investment ties between the two countries."

BY SARAH CHEA [chea.sarah@joongang.co.kr]