Gyeonggi Province Bolsters Foreign Confidence [Korea Times]

By Kim Yon-se
Staff Reporter

Following the recent North Korean nuclear test, the central and provincial governments have been scrambling to ease concerns of local and foreign investors regarding the potential negative impact on business in South Korea.
Leading the move is Gyeonggi (Kyonggi) Province, where 2,000 foreign-invested companies currently reside.

“We are pushing ahead with normalization of foreign investment confidence following the North’s nuclear test,” Gyeonggi Governor Kim Moon-soo, 55, said in an interview with The Korea Times at his official residence in Suwon yesterday.

The province has been quick in setting foreign companies at ease by communicating directly with foreign CEOs and installing a special control center to monitor how the North Korean nuclear crisis has affected provincial affairs. Companies in the province include big name brands such as Siemens, Volvo, 3M, Intel, Delphi, and LG.Philips LCD in Paju, a city near the demilitarized zone.

“Though we’ve found the incident had some effect on [foreign CEOs] business sentiment, there has been no sign of major turmoil,” said Kim, adding that the province will continue to provide all possible administrative support to ease the concerns of foreign investors.

Kim, who was inaugurated as Gyeonggi governor last July, has experienced many twists and turns throughout his career. He first started as a leading student and labor activist during the country’s authoritative rule and was imprisoned for three years. After witnessing the fall of the Soviet Union and Eastern Europe, Kim recognized the limitations of socialism and joined the party of former opposition leader Kim Young-sam, which later evolved into the current main opposition party, the Grand National Party.

He served ten years as a lawmaker representing Bucheon in Gyeonggi Province and devoted the last two years in the National Assembly advocating North Korean human rights and caring for North Korean refugees.

Creating an Ideal Place for Investment

Now, as the new leader of the country’s largest province of 11 million people, Kim faces a new mandate: developing the region as a driving force of Korea.

Attracting high-tech foreign companies to Korea is the key in realizing that goal, Kim emphasizes, as they create superior jobs and bring advanced technologies into the country.

“Gyeonggi Province has many strong merits to attract investment from overseas, such as good logistical conditions, infrastructure and top-level human resources. We will continue to upgrade our investment environment to provide foreigners with the best possible business environment.”

Last month, Gyeonggi Province succeeded in attracting a global R&D center of Kimberly-Clark, a renowned health and hygiene product maker, to Yongin City.

But this is just the beginning, Kim said, adding that the province is gearing up to attract additional investments worth $604 million from 22 foreign companies in the second half of this year.

“We will establish Gyeonggi Province as one of the world’s most attractive locations for investment and maintain our competitive edge over countries such as Ireland and Singapore, ” he said.

The governor also added that the province seeks to alleviate inconveniences experienced by foreign companies when dealing with matters related to real estate and complicated regulations.

In line with these efforts is the creation of the Gyeonggi Association of Foreign-Invested Companies in Gyeonggi Province.

To be launched today in Suwon under the wing of the Gyeonggi Federation of Economic Organizations, the council will start off with about 100 foreign-invested companies in the province.

“The council will facilitate the operations of foreign firms here by encouraging exchanges between CEOs and enhancing their understanding of the business environment in our province,” Kim said.

Ambition for Premium Towns

The governor is also encouraging universities in Seoul to build their second campuses or research institutions in Gyeonggi Province.

Citing the planned research complex of Ewha Womans University in Paju and similar talks between the city and Seoul National University, Kim said, “We have been in closed-door negotiations with other universities to attract their investment.”

Kim’s remark is in line with his ambition to establish many new “premium” towns that are different from ordinary new towns – called “bed towns” – which fail to satisfy employment or educational needs.

“We will foster premium towns that offer sufficient housing, jobs, schools and leisure space,” he stressed.

Leading Advocate of US-Korean Alliance

But there has been another field in which the governor has been concentrating energy after assuming office: strengthening the Korean-U.S. alliance.

“Maintaining a strong relationship with the U.S. is vital for Korea’s development as an advanced nation,” said Kim.

“That is why we are actively supporting the relocation of the USFK’s dquarters to Pyeongtaek.”

Kim has been meeting frequently with senior USFK officers such as General Bell of USFK Command and General Trexler of the 7th Air Force to discuss ways to enhance living conditions for military personnel and their families.

“We are devising ways to offer foreigners as many cultural and educational events as possible so they will have ample opportunities to interact with Korean residents,” he said.

It has been about 100 days since Kim took office as Governor of Gyeonggi Province. In that time, he has also brought public attention to the “deregulation issue” of the metropolitan area – comprised of Seoul, Gyeonggi and Inchon – in which hosts of regulations and limitations prevent investment and economic growth.

“Hynix Semiconductor wants to invest 13 trillion won to expand its plants in Icheon. That would create 6,000 jobs, but the central government is refusing to give approval, saying that it goes against balanced development,” Kim said.

“What is more important than creating jobs?” he asked.

(Source: www.koreatimes.co.kr)