70 Years of the American Chamber of Commerce in Korea: "Korea as Asia's Business Hub"

New Year's Press Conference Held in Yeouido, Seoul
Suggestions on 7 Areas Including Corporate Tax and CEO Risks

[Asia Economy Reporter Choi Seoyun] The American Chamber of Commerce in Korea (AMCHAM) has expressed its ambition to make Korea the "No.1 Business Hub in Asia" on the occasion of the 70th anniversary of the Korea-US alliance and AMCHAM's founding.

James Kim, Chairman and CEO, held a New Year's press conference on the 23rd at the International Finance Conference (IFC) in Yeongdeungpo-gu, Seoul, stating, "To realize Korea's potential as a regional headquarters, reforms are needed in five areas: labor policy, tax policy (including corporate tax and foreign income tax rates), CEO legal liability, intellectual property (IP) protection, and the digital economy."

He added, "Usually, different executives are responsible for each business sector such as manufacturing or sales, but in Korea, the CEO must bear all responsibility," emphasizing, "The criminal liability of CEOs is significant."

James Kim, Chairman of the American Chamber of Commerce in Korea, is delivering the opening remarks at the AHCHAM 70th Anniversary New Year Press Conference held on the morning of the 23rd at The Forum, IFC Yeouido, Seoul. Photo by Yonhap News

James Kim explained, "At the beginning of this year, we conducted a survey on the domestic business environment targeting over 800 member companies, and these opinions emerged," adding, "Immigration policy, foreigner-friendly banking systems, and real estate policies were also pointed out as areas needing improvement."

Member companies ranked Korea as the second most preferred location for Asian regional headquarters after Singapore for the second consecutive year. Regarding difficulties in the domestic business environment last year, they cited economic slowdown (47.8%), unpredictable regulatory environment (24.6%), the pandemic (10.1%), labor policy (7.2%), and global supply chain disruptions (7.2%). For investment outlook from 2023 to 2025, 50.7% responded 'no change,' 37.6% 'reduction,' and 27.5% 'expansion.'

Survey Results on '2023 Domestic Business Environment' for Members of the American Chamber of Commerce in Korea [Image provided by the American Chamber of Commerce in Korea]

Regarding the U.S. Inflation Reduction Act (IRA), James Kim said, "We need to have a long-term perspective." He stated, "Korea and the U.S. maintain a positive relationship, and the highest levels of both countries are willing to resolve anticipated issues and are making significant efforts," adding, "Going forward, AMCHAM will continue to work closely with the Korean and U.S. governments and play a key role as a bridge connecting governments and businesspeople of both countries."

Henry Ahn, Chairman of the AMCHAM Board, who also attended, said, "This year, AMCHAM issued the 'Domestic Business Environment Scorecard,' an expanded version of the 'Korea-US FTA Implementation Scorecard,' highlighting major domestic regulatory issues." He added, "We will work closely with the Korean and U.S. governments to improve unique regulations in Korea's automotive industry, data localization in digital trade, premium pricing policies for global innovative pharmaceuticals, and overlapping regulations on chemicals."

This content was produced with the assistance of AI translation services.