 Global Corporation Day to Be Set Nov. 21
Global Corporation Day to Be Set Nov. 21
By Seo Jee-yeon ,Staff Reporter
As Korea slowly emerges as a major economy and an international player, active both in East Asia and worldwide, the number of foreign corporations active in this market has jumped to over 9,000, said Sohn Young-seok, chairman of the Korea Foreign Company Association (FORCA), in an interview with The Korea Times.
Sales at some of the larger global companies, such as Nokia, Sony, HP and Texas Instruments, have hit nearly one trillion won each for their Korean operations, he explained.
Despite increasing their investment and sales in the domestic market, there still remain numerous barriers against foreign entry. He mentioned provocative attitudes based on nationalism and a lack of regulations covering information, legal, and financial affairs as being the two largest issues facing foreign companies here.
The 50-year-old chairman said that he feels these barriers have steadily improved. A two day run to the southern parts of Korea last month to explore investment opportunities in Kimhae, Mokpo and surrounding areas by some FORCA members, such as Sony Korea, Texas Instruments Korea, ST Microelectronics, Dow Corning Korea, AMP Korea and so on, shows that the climate is getting better.
``During the trip, we met not only non-Korean enterprises established already in those sites and but also local governments. In particular, officials from the local government are much more eager to attract foreign investment than central officials, suggesting considerable corporate tax breaks,'' he said.
Sohn added that FORCA plans to make at least 4 more foreign investment trips this year and it plans a variety of activities to increase awareness of FORCA and to protect members' rights. It hopes to mediate between non- Korean companies and domestic businesses and government when problems and specific complaints arise through the course of doing business here.
FORCA was established, through cooperation with the Ministry of Commerce, Industry and Energy, in 1977 with the aim of supporting domestic operations of non-Korean companies, securing members' rights, and contributing to the economic development of Korea. It also allowed the government to carefully monitor all operations of foreign investors.
According to Sohn, membership numbers about 1,000 corporations. It includes buying offices and non-Korean corporations as well as individuals maintaining offices in Korea. There are also corporations or individuals commissioned to undertake쟟usiness on behalf of foreign entities who are members.
Sohn said that ``While the Korean market is attractive for global business players because it has a homegrown market, including strong infrastructure and an educated workforce, the business environment still lags behind Hong Kong or Singapore.''
For the purpose of developing a more friendly business environment for member companies, as well as to help create a sense of community, KORCA plans to better utilize member resources. It hopes to open service centers that will facilitate in making alliances between members in fields where newcomers need help or advice in carrying out business in Korea.
Sohn said it opened the Risk Management Center with American International Group (AGI) earlier this year.
Later, KORCA plans to open the Financial Service Center with Koram Bank to provide discount or preferential services when member companies borrow money or clear remittances.
In addition, the Foreign Law and Management Center will soon be launched with cooperation from the Central International Law Firm, a Korean law firm.
KORCA intends to set a ``foreign companies day'' on November 21 to help paint global corporations in a good light, he added.
Sohn said that he would suggest to the government that they should pass a law securing equal rights and opportunities for international players, on par with those enjoyed by local companies. This would, he said, contribute to improving the local business climate, to make it more in tune with global standards.
Sohn explained that ``Tax regulations for non-Korean companies should be improved as well. We are suffering from the burden of heavy taxes due to our transparency and higher standards, different from murky Korean companies.''
``It is true that KORCA has a difficult time in getting all non- Korean companies together on one issue. In the face of the problems of language barriers and cultural differences, KORCA will make efforts to become the representative organization to protect international companies' rights and to contribute to the local economy on their behalf,'' he said.
As CEO of Texas Instruments Korea, Sohn identifies himself as a ``TI man.'' He has worked for TI since he left Samsung Electronics 1983.
Texas Instruments started business based on semiconductor-OEM operations in Korea in 1977 and established Texas Instruments Korea, a wholly owned subsidiary of the U.S. based company in 1988. TI Korea has a manufacturing plant for automotive electronic control systems in Chinchon, Chungchung- pukto.
Asked about opportunities and challenges facing global companies, he answered that ``I prefer the open system of global companies to the bureaucratic system of Koreans. Employees can develop individual accountability and global competitiveness based on performance.''
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