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Cohiba
Joined: 01 Feb 2005
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 Posted: Thu Mar 08, 2007 5:24 pm Post subject: Asian Business Hub Part II |
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Less Than 1% of Global FDI Lands in Korea
By Yoon Ja-young, Staff Reporter
South Korea, the world�s 11th largest economy, attracted less than 1 percent of global foreign direct investment (FDI) last year.
According to the Korea Chamber of Commerce & Industry (KCCI), incoming foreign direct investment was $7.2 billion last year, only 0.8 percent of FDI made around the world.
``Korea�s portion in global GDP is around 1.8 percent. The FDI, however, falls short,�� said Kang Suk-ku of the KCCI.
The United Kingdom attracted $164.5 billion last year, 18 percent of the total FDI made around the world. The United States followed with $99.4 billion, accounting for 10.9 percent of the total.
FDI in Korea was also very small compared with its competitors in Asia. China attracted 7.9 percent of the global FDI last year, nearly ten times more than Korea.
Hong Kong, whose economy is about one fifth of that of Korea�s, attracted five times more FDI than Korea. Singapore also attracted 2.2 percent of global FDI last year, though its economy is only one seventh that of Korea.
The outward FDI, however, is soaring. While foreigners� investment in Korea through September this year was $7.5 billion, a decrease of 2 percent from a year ago, Korean firms made investments worth $12.5 billion overseas, a jump of 87 percent. The outward flow of FDI surpassed the inward flow of FDI for the first time, according to the report.
The small amount of incoming FDI reflects various regulations and relatively poor business environment.
The report also said that few multinational companies have their Asian headquarters in Korea. Only 21 multinational companies have regional headquarter in Korea as of last year, while Singapore has 350, China 120, and Hong Kong 1,167.
``The regional headquarters promote related industries� investment, but it has been unsatisfactory in Korea,�� Kang said. ``The growth potential is falling, but investment is not increasing much. Attracting FDI is a good alternative to balance sluggish local investment.��
[email protected]
11-22-2006 17:37
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I think a big reason is: If you were a rich, suave, savvy corporate exec,
would you choose Korea as a place to live? |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Thu Mar 08, 2007 5:49 pm Post subject: Re: Asian Business Hub Part II |
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| Cohiba wrote: |
| Quote: |
Less Than 1% of Global FDI Lands in Korea
By Yoon Ja-young, Staff Reporter
South Korea, the world�s 11th largest economy, attracted less than 1 percent of global foreign direct investment (FDI) last year.
According to the Korea Chamber of Commerce & Industry (KCCI), incoming foreign direct investment was $7.2 billion last year, only 0.8 percent of FDI made around the world.
``Korea�s portion in global GDP is around 1.8 percent. The FDI, however, falls short,�� said Kang Suk-ku of the KCCI.
The United Kingdom attracted $164.5 billion last year, 18 percent of the total FDI made around the world. The United States followed with $99.4 billion, accounting for 10.9 percent of the total.
FDI in Korea was also very small compared with its competitors in Asia. China attracted 7.9 percent of the global FDI last year, nearly ten times more than Korea.
Hong Kong, whose economy is about one fifth of that of Korea�s, attracted five times more FDI than Korea. Singapore also attracted 2.2 percent of global FDI last year, though its economy is only one seventh that of Korea.
The outward FDI, however, is soaring. While foreigners� investment in Korea through September this year was $7.5 billion, a decrease of 2 percent from a year ago, Korean firms made investments worth $12.5 billion overseas, a jump of 87 percent. The outward flow of FDI surpassed the inward flow of FDI for the first time, according to the report.
The small amount of incoming FDI reflects various regulations and relatively poor business environment.
The report also said that few multinational companies have their Asian headquarters in Korea. Only 21 multinational companies have regional headquarter in Korea as of last year, while Singapore has 350, China 120, and Hong Kong 1,167.
``The regional headquarters promote related industries� investment, but it has been unsatisfactory in Korea,�� Kang said. ``The growth potential is falling, but investment is not increasing much. Attracting FDI is a good alternative to balance sluggish local investment.��
[email protected]
11-22-2006 17:37
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I think a big reason is: If you were a rich, suave, savvy corporate exec,
would you choose Korea as a place to live? |
If you read those figures, Korea actually did rather well. For example, to attract one tenth of the amount China received is creditable. Singapore and Hong Kong attract FDI for very different reasons, more akin to the London case.
Much as they might like, execs do not choose investment locations for the pleasant lifestyle (most only stay 2 years) the places are chosen by need. |
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Kimchi Cha Cha
Joined: 15 May 2003
Location: was Suncheon, now Brisbane
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| Posted: Thu Mar 08, 2007 6:17 pm Post subject: |
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Going to Malaysia on a quick trip recently opened my eyes to how far Korea still needs to go if it really wishes to become an international hub. Malaysia's current GDP per capita is currently only around $11,000 compared with South Korea's $20,000 but many factors point to a continued rise in their economy whereas I can't help but think Korea's economy will gradually stagnate unless drastic changes are made.
Malaysia experienced the waves of Chinese and Indian migration during the 18th and 19th century, and despite a fair share of troubles everyone peacefully co-exists within the country. Malaysia's now a multi-cultural, multi-lingual society with its citizens adhering to various different religions as such it is a tolerant and relatively open-minded society as everyone realises that they have to get along in order for the nation to function properly.
Malaysia has a successful, thriving tourism industry attracting tourists from always every point of the globe: Asia, the Middle East, Europe, Australasia and North America. They are expecting 20 million international tourists this year and are accustomed to and welcome tourists as tourism is a focal part of the economy. Plus, all service industry employees speak English.
Malaysia's actively attracting foreign direct investment and is quite successful at this, and its business environment doesn't seem as restrictive and exclusive as Korea's. The economy's gradually diversifying and while manufacturing and primary industries are a major part of the economy, the economy's gradually moving further towards the service industries. Plus, Malaysia is at a strategically important location and actively works as a link between Europe, the Middle East and India, and Asia-Pacific.
Another big point is that many Malaysians are not only fluent in English but that a substantial portion of the population speak either a Chinese language or an Indian language. This will continue to prove a huge advantage as China and India's economies continue to grow and potentially become superpowers.
These points seem to me to show that Malaysia's economy and that of other SE Asian countries are going to continue to grow and diversify. Whereas, Korea really needs to open up or it's very feasible that countries such as Malaysia will eclipse them within the next two decades. |
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Dev
Joined: 18 Apr 2006
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| Posted: Thu Mar 08, 2007 6:36 pm Post subject: |
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As far as English goes, another teacher and I talked about this and agreed that Korean kids are getting more and more fluent if you compare them with each previous school year.
That said, we'd have to wait at least another 15 years for them to grow up and enter the job market. This country does have good potential because of its tech industries too.
One problem they need to fix is their image. The recent scandal with the CEO of Hyundai embezzling 700 million dollars doesn't help. |
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billybrobby
Joined: 09 Dec 2004
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| Posted: Thu Mar 08, 2007 7:28 pm Post subject: Re: Asian Business Hub Part II |
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| Cohiba wrote: |
| Quote: |
Less Than 1% of Global FDI Lands in Korea
By Yoon Ja-young, Staff Reporter
South Korea, the world�s 11th largest economy, attracted less than 1 percent of global foreign direct investment (FDI) last year.
According to the Korea Chamber of Commerce & Industry (KCCI), incoming foreign direct investment was $7.2 billion last year, only 0.8 percent of FDI made around the world.
``Korea�s portion in global GDP is around 1.8 percent. The FDI, however, falls short,�� said Kang Suk-ku of the KCCI.
The United Kingdom attracted $164.5 billion last year, 18 percent of the total FDI made around the world. The United States followed with $99.4 billion, accounting for 10.9 percent of the total.
FDI in Korea was also very small compared with its competitors in Asia. China attracted 7.9 percent of the global FDI last year, nearly ten times more than Korea.
Hong Kong, whose economy is about one fifth of that of Korea�s, attracted five times more FDI than Korea. Singapore also attracted 2.2 percent of global FDI last year, though its economy is only one seventh that of Korea.
The outward FDI, however, is soaring. While foreigners� investment in Korea through September this year was $7.5 billion, a decrease of 2 percent from a year ago, Korean firms made investments worth $12.5 billion overseas, a jump of 87 percent. The outward flow of FDI surpassed the inward flow of FDI for the first time, according to the report.
The small amount of incoming FDI reflects various regulations and relatively poor business environment.
The report also said that few multinational companies have their Asian headquarters in Korea. Only 21 multinational companies have regional headquarter in Korea as of last year, while Singapore has 350, China 120, and Hong Kong 1,167.
``The regional headquarters promote related industries� investment, but it has been unsatisfactory in Korea,�� Kang said. ``The growth potential is falling, but investment is not increasing much. Attracting FDI is a good alternative to balance sluggish local investment.��
[email protected]
11-22-2006 17:37
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I think a big reason is: If you were a rich, suave, savvy corporate exec,
would you choose Korea as a place to live? |
You have weird way of coming to the right conclusions for the wrong reasons. Do you really think the lack of foreign investment is because Korea doesn't have any swanky places for foreign bigshots to hang out? Most corporate execs are stuffy old men anyways, not puff daddy. |
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kotakji
Joined: 23 Oct 2006
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| Posted: Thu Mar 08, 2007 10:04 pm Post subject: |
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| Dev wrote: |
One problem they need to fix is their image. The recent scandal with the CEO of Hyundai embezzling 700 million dollars doesn't help. |
And more importantly, that said embezzler then received a slap on the wrist suspended sentence. Quite a difference from the fate of the Enron execs. |
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