19 foreign-invested firms to invest $2.3b by 2015

Nineteen foreign-invested companies plan to increase investment in Korea by $2.3 billion and hire 2,300 new people by 2015.

The Korean government requested that foreign-invested enterprises expand investment and employment, and pledged stronger support.

During a meeting with Knowledge Economy Minister Hong Suk-woo on Monday, chief executives of major foreign-invested companies called on the government for more incentives such as tax cuts and cash support. They also asked for government assistance in securing high-skilled human resources and simplified procedures for investment in industrial parks.

Knowledge Economy Minister Hong Suk-woo (third from right) and chief executives of foreign-invested firms pose for a photo before a discussion on ways to support the companies’ investment Monday at a Seoul hotel. (Yonhap News)

Mentioning that Korea’s free trade agreements with ASEAN, the European Union and the United States have expanded business opportunities for foreign-invested firms, Hong replied that his ministry would seek to act on their suggestions.

He also said the government would offer preferential treatment in determining locations or incentives to companies that create more jobs. The ministry will hold job fairs and bolster ombudsmanship to resolve their predicaments, Hong said.

Of the 21 companies that attended Monday’s meeting, the 19 that have finalized their investment plans said they plan to invest a combined $2.27 billion and create 2,300 new jobs over the next four years.

Exports by the foreign-invested companies in Korea more than tripled in the 10 years after 2000 ($17.26 billion) to $62.62 billion in 2010.

Hong discussed ways to work out the barriers to greater investment with the representative of the American Chamber of Commerce in Korea, the European Union Chamber of Commerce in Korea and the Seoul Japan Club and the chief executives of foreign-invested firms.

A newly established council headed by the minister will continue monitoring the problems until they are resolved, Hong said.

By Kim So-hyun (sophie@heraldcorp.com)