CEOs and executives of global companies participate in an event, part of the Foreign Investment Week 2016 that took place in Seoul from Sept. 27 through Sept. 29.

Minister Joo Hyung-hwan of the Ministry of Trade, Industry and Energy (MOTIE) said three of Korea’s advantages in attracting foreign direct investment include innovative capability, its free trade agreement (FTA) network and a positive investment environment.

MOTIE Minister Joo made the remarks at a roundtable on foreign investment in which CEOs and executives from global companies participated at the Grand InterContinental Hotel on Sept. 29. The event was part of the Foreign Investment Week 2016 that took place in Seoul from Sept. 27 through Sept. 29.

Officials from 16 global companies in eight countries participated in the roundtable. The company included Kuang-Chi, China’s up-and-coming aerospace technology superstar; Yaskawa, a global No. 1 industrial robot maker; Brose, a German self-driving automotive parts maker; Merck, a German pharmaceutical company; and Toray, world No. 11 chemical company. 

As one of Korea’s top three magnets in attracting FDI, Minister Joo stressed that the nation is armed with enough innovative capabilities to command new industries. Korea is ranked 1st in terms of R&D investments versus GDP, and the nation placed 1st in Bloomberg’s innovative index for the third consecutive year.

Second, he touched on the nation’s FTA network, in which Korea has concluded FTAs involving 50 countries, covering global consumption markets accounting for three-fourths of global GDP, giving Korea the advantage of serving as a global production hub to enter the global market.

Third, Joo cited the nation’s world-class investment environment. “Korea has strong fundamentals and creates investment opportunities through continuous restructuring,” he said, adding that various incentives, including tax and rent cuts, are offered to attract FDI, and ombudsman services are provided to solve complaints and grievances. 

Some participating companies spoke highly of Korea’s investment benefits as its FTA network and human resources. Announcing their investment plans in new industries, a few companies asked for information for possible collaboration with Korean companies. They also called for the Korean government to reinstate incentives for foreigner-invested companies and revamping environmental regulations on a constant basis. 

Applications for one-on-one meetings between foreign investors and Korean companies stood at 640, 1.5 more than the Foreign Investment Week 2015 (429 cases). 

The Foreign Investment Week 2016 eased anxiety about Chinese investments in Korea. Eight-two investors from 73 Chinese companies participated in the Foreign Investment Week 2016.

In particular, the China Investment Promotion Agency (CIPA), under the umbrella of the Chinese Ministry of Commerce, proposed the establishment of “Korean-Chinese investment cooperation meeting series.” Working-level negotiations between Invest Korea and CIPA are under way on the matter. 

Organizers hosted an IR session to explain how to cooperate and provide support in promising investment areas to reinvigorate investments in the Saemangeum Korean-Chinese industrial complex, as Korea and China had agreed during negotiations of the free trade accord.