It appears that the Gyeonggi Provincial Office’s ongoing efforts to attract foreign businesses with first-rate technologies has come a long way in helping the nation compete favorably with other rival countries in the sector of hi-tech industries when compared to the similar efforts made by Shanghai, Taiwan and Tokyo. 

Businesses with source technologies that the provincial office has succeeded in attracting include Hoya of Japan (7th generation photomask and R&D), four affiliates of ULVAC of Japan (the No.1 player in the vacuum technology), Merke of Germany (monopolizing the liquid crystal technology), 3M of the U.S. (the world’s best film for highly luminant EL devices), Mikuni of Japan (patent for mill base for highly resistant resin BM), Siemens Medical (ultrasonic medical device), and Metaldyne Korea (noise/vibration control device). 

All of them bring about a high effect of transfer of high-end technologies to domestic businesses and creating jobs and are expected to accelerate the restructuring of domestic businesses. The provincial office’s aggressive effort for selective attraction of businesses with first-rate technologies appears to have contributed to enhancement of the nation’s technological competitiveness. Such efforts appear to be all the more worthwhile, as there are various regulations against businesses in Seoul and vicinity due to overpopulation in the area. 

Taking the case of attraction of 3M which is important for the LCD industry, for example, the provincial office took painstaking efforts to persuade the central Government to amend the relevant regulations, seeing that the U.S. business almost gave up its plan to build a factory in Gyeonggi Province due to a myriad of obstacles. 

Some people point out that many of foreigners’ investment plans announced by local autonomous bodies end up with no substantial results. However, in the case of Gyeonggi Province, 55% of a total of 48 foreign businesses which expressed interest in investment in the province after Governor Sohn Hak-kyu was sworn in June 2002 have fulfilled their promise until November 2005, showing a marked contrast with the national average of 13.6 percent. 

Thus, the provincial office has attracted a total of $13.3 billion worth of investments from 88 foreign-based businesses between July 2002 and November 7, 2005, creating 67,000 jobs either directly or indirectly, with the emphasis on how residents in the province will make a living 10 or 20 years later. 

A provincial official said that foreign-based businesses opening a facility in the province would find themselves in an advantageous position to advance into Asian markets. He added that the central Government should clear most of the obstacles against newly built businesses or expansion of existing businesses in the Greater Seoul area, as Gyeonggi Province is in a relatively difficult position to attract foreign direct investment due to a myriad of regulations and high land prices.