(Unofficial Translation)

Good morning everyone. I am glad to meet you all. Foreign-invested companies are the Korean economy’s invaluable partners. The number of foreign-invested businesses currently operating here is around 16,000. Our country has been able to become one of the world’s top 10 economic powerhouses thanks to global businesses that have joined hands with Korea, believing in our potential. I am grateful to foreign-invested firms and foreign chambers of commerce in Korea as well as the Korea Foreign Company Association. My words of encouragement also go to the Korea Trade-Investment Promotion Agency, Invest Korea and the Office of the Foreign Investment Ombudsman, whose hard work has helped foreign businesses invest in Korea.

Uncertainty in the world economy is increasing and foreign investment is contracting worldwide due to the COVID-19 crisis and the reorganization of global supply chains. Even under these circumstances – against expectations – foreign investment in Korea has significantly grown.

Since the inauguration of my Administration, the annual average foreign investment over the past five years has risen 34 percent relative to the comparable period before my term. In particular, the amount was close to US$30 billion last year, hitting an all-time high. Moreover, there have been considerable increases in investments, including in future cars, biohealth, vaccines, ICT and other cutting-edge new industries; materials, parts and equipment industries that contribute to stabilizing supply chains; and areas related to the Korean New Deal, like contact-free services, renewal energy and more. Such growth in foreign investment reflects the elevated status of the Korean economy and the effects of key economic policies prioritized by the Korean Government – carrying immense significance.

Foreign-invested companies’ sales and employment are the driving force to invigorate the Korean economy and enhance its competitiveness. Korea is writing a new success story thanks to foreign investment. I am convinced that these companies are also growing further by investing in Korea.

Foreign investment in Korea receives numerous incentives. These include cash support for a certain percentage of the investment, rent reductions to assist with settling down, tariff exemptions on capital goods needed for investment and local and income tax cuts. We also support foreign-invested companies’ employment of young people in various ways.

Last year, the Korean Government cooperated with foreign chambers of commerce in Korea to improve 22 regulations for foreign-invested companies. Going forward, we will continue to pursue relevant innovation by applying regulatory sandboxes and allowing exceptions to some regulations. Policy efforts to promote mutually beneficial development with foreign-invested companies are also in the works. We will strengthen tax credits and cash support for national strategic technologies such as semiconductors, batteries and vaccines as well as the production of and investment in products that contribute to carbon neutrality.

We will expand our FTA network to cover the New Northern region, Latin America, the Middle East and Africa so that Korea will be able to serve as a hub from which foreign-invested companies can advance into the global market. Efforts are also being made to join such mega FTAs as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. We will also strengthen communication with foreign investors to address their investment-related difficulties in a timely manner.

Korea is a stable, sustainable and attractive investment destination. The country has a strong manufacturing industry based on advanced technological prowess and production capabilities, and it has built an FTA platform that covers 85 percent of global GDP. It is also equipped with strong infrastructure for innovation characterized by an excellent workforce, the world’s best ICT network, global entrepreneurship and a high level of intellectual property protection.

In particular, despite the COVID-19 pandemic, Korea has not taken lockdown measures, maintaining an open economy that guarantees the stability of logistics and the movement of people. Thanks to this, amid the pandemic, Korea suffered the least economic damage among major countries. Our country has demonstrated a fast and strong recovery and is solidifying its position as a stable investment destination with a high sovereign credit rating. I hope that all of you at foreign-invested companies – that are taking the lead among global businesses – will become “investment evangelists” to inform the world of Korea’s appeal as an investment destination.

Korea has laid the foundation for its industrial advancement through foreign investment and technology. We also surmounted economic crises such as the global financial crisis together with foreign-invested companies. I hope that all of you who have trusted and invested in Korea will always stand together with our country as it makes changes and takes on challenges. I look forward to foreign-invested companies and Korea forging even stronger partnerships and taking off to new heights together.  

Thank you.