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The business playing field still has a lot of lumps and bumps in it for both domestic and foreign players relative to global standards.카테고리 없음 2013. 9. 3. 10:16반응형
What foreign investors want
..listen more carefully to foreign voices
..ensure predictability in policy making
..provide more incentives
..establish a more stable legal environment
The government must listen attentively to foreign investors’ voice in the regulatory process to attract more foreign investment, heads of foreign business lobbies in Korea said Monday.
They also called for President Park Geun-hye and her administration to seek ways to ensure predictability and transparency in policies to make Korea truly an international marketplace.
“Although many Korean ministries are making more of an effort to seek the views of stakeholders when rules and regulations are developed or changed, too often, new or changed rules that affect companies’ ability to do business are enacted in Korea too quickly without sufficient notice to or involvement of stakeholders, including the foreign business community,” American Chamber of Commerce in Korea (AMCHAM) President Amy Jackson told The Korea Times in an email interview.
Given the United States and other countries’ regulators welcome foreign companies’ views during their domestic rule-making process and Korean companies such as Samsung Electronics and Hyundai Motor make their views known in the U.S. and other countries where they have operations, Jackson said, “Foreign investors in Korea should have similar opportunities.”
She warned rapidly changing government policies are also a component that brings confusion to the market because investors want to invest where they know rules are predictable and transparent.
Thilo Halter, president of the European Chamber of Commerce in Korea (ECCK), said the real issue concerning the regulatory environment in Korea has less to do with the regulations themselves, but more to do with communication.
“Foreign business representatives will greatly appreciate an enhanced opportunities for frequent and open dialogue with government officials, for it is still challenging for us to keep up with changes in Korea’s laws and regulations.”
He said the stability and predictability of the regulatory environment is of crucial importance for foreign businesses in order to successfully operate in Korea and to justify more investment.
In general, regulations do not discriminate against foreign companies doing business in Korea but if any disparity arises, it is generally in the reaction to noncompliance with the regulations, Kim and Chang lawyer Jeffrey Jones said.
“There is generally less tolerance for foreign companies’ noncompliance with regulations than domestic companies depending upon the circumstances,” said Jeffrey.
James Rooney, chairman of Advanced Capital Partners, commented that Korea still has a long way to go in its business environment for foreigners. He said the business playing field still has a lot of lumps and bumps in it for both domestic and foreign players relative to global standards.
“Notwithstanding all the hard work of the last 15 years, I fear that Korea is still only at 50 percent of where it needs to be for a bright and colorful future across all economic sectors and at all levels of society,” said James.
Facing the slowing of foreign direct investment (FDI), the Park Geun-hye government and the ruling Saenuri party are pushing to pass the “Foreign Investment Promotion Act” to attract foreign capital by cutting red tape and offering incentives.
But it is uncertain whether eased regulations on foreign investment will be approved next month at the National Assembly because of a lack of cooperation from the opposition parties.
Strict rules on cross shareholding recently affected multi-national companies’ investment plans in Korea. Joint projects worth 2.3 trillion won ($2.1 billion) between GS Caltex and SK Global Chemical and their separate Japanese partners to build plants in Korea are now at risk of collapsing.
French Korean Chamber of Commerce in Korea Chairman David-Pierre Jalicon said it seems necessary to revise the existing rule. “I guess this situation is a good showcase of what’s happen in Korea when and where there are too many levels of administration and too many regulations which sometimes do conflict with each other.”
Jalicon urged the government to introduce a more flexible, progressive and selective approach, in regards to categories of investors who are more vulnerable instead of making too strict, speedy and general regulations.
Jones said these rules relate to the need to end the cross holding of the chaebol and they are unusual. “Special exceptions should be permitted when these type of situations arise.”
Meanwhile, Jackson once again stressed the importance of communication.
“If increased FDI is a key goal, it is important that the Korean government continually and directly seek input and feedback from the foreign business community as to what is needed to attract more foreign investment into Korea,” said the AMCHAM president.
On top of focusing on deregulation and improving predictability of government policy to host more foreign companies’ investment, she said Korea should also handle intensive labor relations which serve as a major impediment to foreign investment.
Korea can play a more pivotal role as a technology hub or even a regional hub for European companies if the government continues to strengthen the regulatory environment to further catch up or even by-pass other Asian business centers, Thilo said.
“For instance, when competing at the international level, corporate and personnel tax rates are, among others, key criteria in attracting investment and foreign talent,” the ECCK president said.
Multi-national companies are considering expanding their businesses or even establishing regional headquarters and research and development hubs in Korea. For example, General Electric announced on June 24 that it will set up the headquarters for its marine shipbuilding sector in Busan, Amy said.
“If really Korea wants to compete with Singapore and Hong Kong, it should reinforce its attractiveness and still need to consider strong incentives and clear and stable legal environment,” Jalicon said.
In the January-March period, actual foreign investment in Korea fell 23 percent to $1.39 billion from a year earlier, according to trade ministry data.반응형