Yoon Meets Foreign Companies: "Providing Institutional and Regulatory Environment More Favorable Than Global Standards" (Comprehensive Report 2)

Foreign-Invested Companies Luncheon Meeting
"No Hesitation in Tax Benefits and Support"

President Yoon Suk-yeol is speaking at a luncheon meeting with representatives of foreign-invested companies at the Chamber Lounge of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on the 14th. [Image source=Yonhap News]

President Yoon Suk-yeol announced on the 14th that he will reform the 'killer regulations' to align with global standards and expand investment incentives to encourage foreign-invested companies to actively invest in Korea. He emphasized that efforts will be intensified to improve the investment environment by eliminating unnecessary regulations and expanding tax support, especially to further increase foreign investment in advanced industries such as semiconductors.

On the same day, President Yoon held a luncheon meeting with foreign-invested companies at the Chamber Lounge of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, stating that the government will create an environment that offers systems and regulatory conditions more favorable than global standards to enable active domestic investment.

This meeting was organized to encourage foreign-invested companies investing in Korea and to request the expansion of foreign investment in advanced industries. Foreign-invested companies refer to those in which foreign investors hold a certain percentage of shares, as defined by the Foreign Investment Promotion Act. Representatives from the chambers of commerce in Korea and 12 foreign-invested companies gathered at the meeting.

President Yoon explained, "Despite the global economic downturn, you have invested a substantial amount of $32.7 billion," adding, "Foreign-invested companies account for 21% of Korea's exports and 6% of employment." He continued, "This is a tremendous contribution to our economy," emphasizing, "The employment opportunities you provide are high-income, quality jobs that are highly preferred by young Koreans, making them even more meaningful."

According to the Ministry of Trade, Industry and Energy, foreign direct investment (FDI) last year reached a record high of $32.72 billion, a 7.5% increase from the previous year based on reported figures. This represents a 57.7% increase over four years. The increase in foreign investment was driven by sectors such as semiconductors, secondary batteries, and electrical and electronic fields, as well as services like finance and insurance. Service sector investment grew thanks to investments from the Saudi Public Investment Fund (PIF) and large-scale finance and insurance investments.

Yoon: "Now It's the Government's Turn... Cooperation with the National Assembly to Create a Business Environment"

President Yoon stated, "Now it is the government's turn. We must provide systems and regulatory environments that meet or exceed global standards and spare no effort in various tax and support measures to help you conduct business in Korea," adding, "I believe this is the reciprocal benefit that this government must provide to foreign-invested companies investing in Korea."

President Yoon promised to spare no support in creating an environment where foreign-invested companies can actively invest domestically. He said, "For areas governed by laws and budgets, we will cooperate closely with the National Assembly to quickly create a business environment for you," and added, "For areas under presidential jurisdiction, such as regulations and subordinate budgets, we will actively resolve issues."

Furthermore, President Yoon added, "Korean companies are also investing heavily overseas, and foreign-invested companies are investing significantly in Korea. Ultimately, this synergy will contribute to the economic prosperity not only of Korea but also of the Indo-Pacific region, the global community, and all liberal countries that share our values. I hope we can all work together toward this goal."

Earlier, the Ministry of Trade, Industry and Energy announced in last month's work report that foreign investors investing in advanced industries such as semiconductors and supply chain sectors will be provided with investment incentives of up to 50% of their investment amount. In this regard, the government secured a budget of 20 billion KRW for foreign investment attraction incentives this year, four times larger than last year.

At the luncheon, Minister of Trade, Industry and Energy Ahn Duk-geun presented the 'Foreign Investment Activation Plan,' followed by suggestions from attendees to expand foreign investment. Foreign-invested companies proposed opinions on expanding investment in various fields such as finance, labor, and energy.

AMCHAM Representative: "Korea as a Regional Hub in Asia"

President Yoon Suk-yeol is shaking hands and taking a commemorative photo with attendees after concluding a luncheon meeting with representatives of foreign-invested companies at the Chamber Lounge of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 14th.
[Photo by Yonhap News]

James Kim, representative of the American Chamber of Commerce in Korea (AMCHAM), emphasized, "There is no reason why Korea cannot become a regional headquarter in Asia," adding, "Making Korea a regional hub in Asia is AMCHAM's goal." Kim requested government support for simplifying the submission documents required for foreign exchange transactions and easing network separation regulations. Lee Young-kwan, CEO of Toray Advanced Materials, stated, "Since the current administration took office, Korea-Japan relations have improved, leading to expanded investment in Korea," and suggested including materials, parts, and equipment in the tax credit targets for national strategic technologies.

Other attendees also requested government support and cooperation in various areas, including ▲extension of temporary investment tax credits and support for investments in eco-friendly alternative fuels ▲increasing the national subsidy ratio for cash support to foreign-invested companies ▲investment support for future eco-friendly vehicle production and logistics cost support for automobile exports ▲government-level regulation adjustments and infrastructure development to revitalize the clean hydrogen energy industry.

Listening to these requests, President Yoon said, "When you point out areas that need improvement, I believe we can create new global standards rather than just follow existing ones," emphasizing, "If the Korean market can establish more rational and desirable standards, it will become a stronger and highly competitive market."

He added, "Although it may be difficult to implement all the suggestions immediately, through efforts to accept them, the Korean market can become a globally competitive market that sets standards."

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