Government, Business, and Diplomatic Envoys Gathered in One Place: "Investment Incentives Must Be Expanded"

140th Anniversary of the Korea Chamber of Commerce and Industry
Global Economic Exchange Night Event Held
Opinions on Expanding Investment Incentives and Labor Market Flexibility
Chey Tae-won "KCCI Economic Diplomacy Platform to Launch in July"

Diplomatic envoys in Korea expressed the opinion that foreign investment incentives should be expanded and the labor market flexibilized to promote investment by foreign companies in Korea.

Prime Minister Han Duck-soo, Chairman Choi Tae-won of the Korea Chamber of Commerce and Industry, and members of the diplomatic corps in Korea attending the 'KCCI Global Economic Exchange Night' are applauding as the opening declaration is made. Photo by Korea Chamber of Commerce and Industry

The Korea Chamber of Commerce and Industry (KCCI) announced on the 30th that it held the 'KCCI Global Economic Exchange Night' event at the Vista Hall of the Grand Walkerhill Seoul, attended by about 270 people including representatives from the business community, government, regional chambers of commerce, and foreign missions in Korea, providing a platform for communication to enhance global economic cooperation.

The event was held to commemorate the 140th anniversary of the founding of KCCI. Prior to the event, a survey titled 'Promising Industries for Cooperation with Korea and Expansion Plans for Foreign Investment' was conducted among 61 foreign diplomatic missions in Korea. The envoys indicated that expanding investment incentives and improving regulations related to corporate activities such as labor and taxation are necessary tasks to promote investment by foreign companies. The most frequent response was the need to expand foreign investment incentives (31.0%), followed by improvements in related laws and systems such as labor market flexibilization (17.2%), corporate regulation improvements (13.8%), and strengthening tax benefits such as corporate tax reductions (10.3%).

The diplomatic envoys also expressed the view that labor regulations, including criminal liability risks for CEOs, increase domestic management uncertainties and side effects. They noted that even in industries with low risk of serious accidents, the burden of managerial punishment due to potential accidents may discourage foreign-invested company headquarters executives from being assigned to Korea.

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (left), is communicating with foreign diplomatic envoys in Korea to promote global economic cooperation during the Korea Chamber of Commerce and Industry's Global Economic Exchange Night event. Photo by Korea Chamber of Commerce and Industry

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, is delivering the opening speech at the 'KCCI Global Economic Exchange Night' event. Photo by Korea Chamber of Commerce and Industry

The industries in which cooperation with Korea is desired (multiple responses allowed) were surveyed as renewable energy (77.0%), tourism and logistics (70.5%), pharmaceuticals and bio (65.6%), and secondary batteries (62.3%). This is because the world faces common challenges such as green energy, digital innovation, and changes in the international trade environment, creating a need for a 'Value Partner' to safeguard economic security. In particular, KCCI reported that the envoys hoped to form a mutually complementary economic community with Korea to secure a reliable supply chain in the resource and energy sectors.

Meanwhile, the event was attended by Prime Minister Han Duck-soo, Minister of Trade, Industry and Energy Ahn Duk-geun, and Lee Jae-jung, Chair of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee. Notably, 106 out of 116 foreign missions in Korea participated, reaffirming the high global interest in economic exchanges with Korea. From the business sector, KCCI Chairman Chey Tae-won, Vice Chairman of Hyosung Cho Hyun-sang, Samsung Electronics President Kim Won-kyung, and SK Communications Committee Chairman Lee Hyung-hee were present. Chairman Chey Tae-won stated that starting with today’s event, KCCI will strengthen its role as an economic diplomacy platform.

In his greeting, he said, "The suggestions you have made can serve as indicators to upgrade Korea’s business and investment environment to global standards," adding, "If our business and investment environment continues to improve based on this, global economic exchanges such as increased investment by global companies will be further activated." He continued, "KCCI will faithfully perform its role as a bridge connecting companies and the government, as well as companies with companies," and added, "We are preparing to launch the KCCI economic diplomacy platform in July, which will enable the exchange of practical cooperation information between the public and private sectors."