 World's First Foreign Company Day Set for Dec.
On Dec. there will be a variety of events to appreciate the role of multinational companies and their contributions to society. South Korea thus becomes the first country in the world to have a Foreign Company Day.
The Korea Foreign Company Association (FORCA), on its 24th anniversary, will be hosting the event.
``FORCA hopes to be recognized as one of the big three economic associations by 2003. It also expects the Foreign Company Day to be an occasion to shed the negative image of foreign companies and to attract more foreign direct investment,'' said FORCA Chairman Sohn Young-seok, 50.
Foreign Company Day will be supported by the Ministry of Commerce, Industry and Energy, the Seoul Metropolitan City and 16 local governments, The Korea Times and the Hankook Ilbo, and the Korea Broadcasting System.
At the ceremony, about 500 dignitaries, including government officials, business leaders, foreign ambassadors and heads of international organizations, are scheduled to be present.
Sohn said an array of celebratory events, planned at the Central City Convention Center in Socho-dong, south of the Han River, include a seminar on the economy and awards for model foreign companies.
During the fourth week of November, multinational brands that have sales outlets at local department stores and foreign casual restaurant chains will provide discounts to celebrate the day.
``One of the noticeable changes following 1997 is the growing role of foreign companies in the economy. Foreign direct investment was first introduced in 1992 but the role of non-Korean companies was and checked by lingering public concern over foreign control of domestic industries.
However, such mentality has changed noticeably since the currency crisis,'' the chairman said.
``The economic crisis gave momentum to Seoul's transition to a proactive foreign direct investment promotion policy. A growing number of the Korean people came to appreciate what kinds of benefit foreign companies could bring to the local economy,'' said Sohn, who is also president of Texas Instruments Korea.
Currently, about 10,000 foreign companies are doing business in South Korea. They include such global giants as Nokia, Sony, Motorola, Hewlett Packard, IBM, and BASF. Each of them has already realized sales of more than one trillion own here.
According to the Ministry of Commerce, Energy and Industry,쟯ver the first half this year, a total of $6.7 billion in foreign direct investment flowed into Korea, a rise of 16.8 percent over the same period last year.
The ministry source added that foreign invested companies in which non- Koreans control more than half of their equities stakes, accounted for 18.5 percent of total revenues, 21.2 percent of total value added and 9.7 percent of total employment.
Sohn stressed that foreign firms are creating more jobs, transferring advanced technology and managerial know-how and helping the government increase tax revenue and boost exports.
To appreciate the commitment of those global players to the local economy, the government will reward model foreign companies with performance awards.
According to Sohn, the rewards will be given to non-Korean companies that have committed a large amount of money to increasing exports and substituting imports or which are active in transferring technology.
The awardees also include foreign firms that are dedicated to promoting cultural understanding, to protecting the environment and to expanding charity activities.
Sohn said that despite significant progress in Seoul's inbound investment policy, there still remain numerous barriers to foreign entry. He listed nationalism, labor market rigidity, a lack of information on the corporate climate and living conditions for expatriates as all being barriers to entry.
The association will hold a seminar this month to discuss such challenges that foreign businesses face in Korea.
As part of steps to promote a sense of community among FORCA members from all over the world, including their Korean staff, the association plans to open more service centers next year.
``KORCA is in talks with a local bank to open a Financial Services Center in order to provide discounts or preferential services when member companies borrow money or clear remittances. The creation of a Foreign Company Intellectual Property Rights (IPR) center has also been under study with the aim of watching for illegal IPR violation,'' he explained.
On the second Foreign Company Day next year, FORCA is eying to hold an international forum with the participation of CEOs from headquarters all around the world, Sohn said.
FORCA was established in 1977 through cooperation with the Ministry of Commerce, Industry and Energy with the aim of supporting domestic operations of non-Korean companies, promoting rights of member companies and boosting trade and investment in Korea.
FORCA members include foreign-invested companies, buying offices of foreign corporations, and Korean companies as well.
- Korea Times -
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