Plan to improve Foreign Investment Environment of Gyeonggi

Gyeonggi reported that it would build a public dormitory for foreign workers and also participate to settle the union issues that the most of foreign companies are troubled with.

Gyeonggi has initiated this plan of improving foreign investment environment just in this year and will continue expanding this plan further.

According the ‘2007 Improvement Plan for Foreign Investment Environment of Gyeonggi’, there are various plans to be implemented such as to establish ‘operational support system’ between governmental and nongovernmental organizations, to introduce ‘unofficial mediation system’ for union issues which is considered to be the most influential factor damaging the image of domestic investment environment, and to build a public dormitory nearby foreign investment village of Pyeongtaek and Hyeongok which will contain many convenient features and cultural facilities.

Referring to the internal and external researches and surveys taken by many other institutions, even though it has a great potential of investment, Korean market is not considered to be in the first line of choice for investment, due to its poor environment provided to the foreign investors. So therefore to induce those of prospect investors from overseas, Gyeonggi will from next year expedite its plan of improving the local environment for foreign companies.

Last February, 3 experts of investment environment were been dispatched and in April, Foreign Investment Support Office was founded to give more direct and active support to the local foreign companies. With those plans started early this year, Gyeonggi has performed other various plans as well, such as publication of cultural magazine to support foreigners to know better about Korean culture which was initiated in June, opening of language classes for foreigners so far implemented with 2 terms for 139 foreigners, and addition of a new bus route between Seoul and Pyeongtaek industrial village for foreigners to commute more conveniently which was completed in July. Also in October many plans were initiated such as to establish the Committee of Foreign Corporations, to develop DB system that meets the needs of foreign companies which will eventually contribute to have a right policy and to introduce an operational support system which will allow efficient business operations.
Regardless of Gyeonggi’s utmost effort to resolve the issues that the local foreign companies have, one of the most critical issues, which is the ‘Union problem’, was never been approached.

Since the ‘Union Issue’ was recognized as an issue that is only to be handled by the central government, it was inconceivable for the local governments to input their own concerns on such issues. However, with Gyeonggi’s ‘unofficial mediation system’ to be launched, we will be able to see better process in resolving union issues.

It is yet known to the overseas that the Korean business market is suffering with an unfamiliar union relationship, disregarding the fact of that the relationship has actually been stabilized with the decrease of conflicts between labor and management, use of peaceful measure from the violent measure and etc. So therefore, Gyeonggi is slated to perform an aggressive plan to publicize the actual and positive side of domestic union relationships to overseas market.

Upon the currently implement feasibility study, a public dormitory constituted with great convenient facilities and cultural features will be established at Osung Industrial Village and Jangan-2 Industrial Village and foreigner exclusive village will also be formed within Pyeongtaek International Zone. Also for the Committee of Foreign Corporations that was set up in Oct. 24 to activate the community and network of foreign companies, Gyeonggi will give aggressive supports for their administrational and financial management.

“This improvement of foreign investment environment will certainly be considered as a benchmarking model for the markets inside and outside of the country. Initiating the plan by improving the investment environment, we will go further into the various areas that are to be developed and improved to induce more number of foreign enterprises into Gyeonggi. This 2007 Improvement Plan for Foreign Investment Environment of Gyeonggi will be the turning point to have a great change in the environment for the foreign investors.”, said the manager of Investment Promotion Department of Gyeonggi.