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November 30, 2009
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| Responding to nationwide efforts to boost investment in rural areas, foreign companies are expected to expand their presence in Korea’s provinces next year, according to survey results from the Korea Chamber of Commerce and Industry yesterday. The business lobby asked 800 foreign companies doing business outside the capital about what they planned to invest next year, and the total was 7.3 percent higher than in 2009. Asked their main investment type, 32.5 percent replied research and development, followed by equipment (22.9 percent), adding production lines (22.3 percent), strengthening retail and distribution channels and starting new businesses (5.4 percent). “The prospects for investing in the countryside are improving due to various incentives given to businesses,” the group wrote. “Conditions have improved even more with the recovery in investor sentiment after its contraction last year.” In fact, 77.8 percent of the companies polled said investment conditions are improving, while only 4.5 percent said conditions have deteriorated. A Europe-based manufacturing company located in South Chung-cheong, for example, said that in the past, a foreign-invested company decided to reinvest in Korea, it had to pay additional fees. “That’s not the case anymore,” said a company official. Asked what industries they would choose to invest in, 32.2 percent chose renewable energy and green parts, followed by high-tech (31.6 percent); manufacturing including steel and machinery (21.8 percent); service industries (10.8 percent), and construction (3.6 percent). By Lee Eun-joo [angie@joongang.co.kr] JoongAng daily Hot issue
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