Another website devoted to the promotion of Korea as a lucrative investment is hosted by KICOX, who envisions Korea as the hub of northeast Asia. This is a site that promotes industrial complexes in order to allure foreign investors. Surfing around one will find a guide to investment by foreign manufacturers. It's front page shows two men, one perhaps Korean, the other and obvious foreigner. A nice pictorial representation of showing contact between foreign investors and locals.
This guide presents information very clearly including an outline of what constitutes a foreign investor, very important since and Koreans abroad with permanent status in that country count as foreign. Although “investments by Chinese nationals who hold semi-permanent residency status in Korea (qualified as in F2) are not considered as foreign investments"
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Foreign Investment Zones
In the past, a government or locality would first develop an industrial complex and then attempt to attract foreign investment to it. Foreign investors, however, had difficulties finding complexes that satisfied their particular needs. To compensate for these shortcomings, the Foreign Investment Promotion Act grants authority to local governments to designate a particular area where a foreign investor wishes to invest as a Foreign Investment Zone (FIZ) after receiving approval from the Foreign Investment Committee. Therefore, Section 18 allows a foreign investor to receive top-level investment incentives at a site whose geographical advantages can maximize the viability of his or her specific project. Once a foreign investor makes an application for a site to be designated as a Foreign Investment Zone, the mayor or governor of the jurisdiction prepares a plan and submits it to the Minister of Commerce, Industry and Energ y. After reviewing the same, the minister will introduce the plan to the Foreign Investment Committee. Once the committee approves the plan, the mayor or governor posts notice of the designation. Even though “persons having right of FIZ designation” are “mayors or provincial governors shall designate FIZ among those areas foreign investors desire” they still have to go through review by Commission on Foreign Direct Investment. SOURCE
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In the guide, a statistical breakdown is included regarding each complex. (see Bio of Industrial Park) I am fascinated by the detailed report that not only gives information about the topography, number of employees, roads, and water supply, but it also gives helpful contact information like government sites. Since Korea is trying to attract investors in these regions it makes sense for them to be open and honest about relevant information. They present pertinent data someone would need to know if deciding to move a company to the area. For example, nearby hospitals and housing, energy and waste company sources, and supporting organizations. These data reports seem to be acting more as marketing ads. They highlight positive features of moving business to this area such as benefits.
The benefits offered usually involve tax breaks or price reductions on purchasing property. Sometimes they give investors priority in moving in or housing selection. Most of these perks are offered to foreign investors only. One would think that giving foreigners priority would unnerve locals. As governments give more benefits to foreigners, local entrepreneurs are seeking locations elsewhere. Korean administration seems to be fostering a certain inferiority complex among its people as it sends a messages that external worth is more valuable and important. Rather than giving precedence to locals, officials are recognizing foreigners as more important to the development of its economy.