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January 17, 2008
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| For foreign investors, the eventual outcome of the ongoing investigation into Lone Star Funds, the U.S. investment firm, will be “a good indication of how Korea will treat other foreign investors in the future,” a senior official of the American Chamber of Commerce in Korea said yesterday. He warned about the case’s “significantly negative impact” on foreign direct investment here. “Many foreign investors, both current and potential, are watching this case very closely,” said chamber President Tami Overby in Seoul yesterday. “They do not see it as a single, isolated case but rather as a clear example of the lack of predictability in the Korean market.” She made the remark at the association’s New Year press conference, which was also attended by Chairman William Oberlin. Korean prosecutors have been questioning Lone Star Chairman John Grayken this week on charges that the fund took over Korea Exchange Bank at an artificially low price in 2003. Overby said many Koreans seem upset that Lone Star stands to make huge profits from its Korean investments and that it will not pay taxes here because of a legal tax treaty. “In the most competitive business environments, as long as you follow the law, there is no negative concept called ‘excessive profits,’” she said. As for the Korea-U.S. free trade agreement, Oberlin said the chamber is doing its best to persuade U.S. legislators to ratify this “very strong, balanced and comprehensive FTA.” He said he hoped the deal will be ratified here before the National Assembly election in April and in the U.S. before this summer. But beef remains an obstacle, he added. “Senior members of congress as well as the U.S. administration have made it very clear that the Korea-U.S. FTA will not be considered for ratification until the Korean beef market is fully reopened,” he said. “As an American living in Seoul, I have not been able to buy an American T-bone steak or LA kalbi for my family for over four years and this just does not make sense to me.” Korea partially lifted the ban on U.S. beef imports in 2006, but it has been suspending inspections of American imports since late last year after the discovery of bone fragments in U.S. shipments. Turning to the new Lee Myung-bak administration, Oberlin urged labor flexibility, saying, “The issue is not only for foreign businesses but also for all Korean businesses.” Overby added, “Labor flexibility is related to the overall competitiveness of Korea.” By Moon So-young Staff Reporter [symoon@joongang.co.kr] |
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