[APEC Review] APEC attracts $500 million in foreign investment
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Korea's hosting of the Asia-Pacific Economic Cooperation (APEC) conference 2005, which closed successfully on Nov. 19, has brought about many substantial results, including foreign investment.
The nation has not only succeeded in attracting more than $500 million in foreign direct investment (FDI) during the APEC meetings but also harvested intangible gains, including the upgrading of its national brand value as a global information communication technology (ICT) leader.
Through the APEC Investment Opportunities 2005, the central government, the Busan local government, Incheon Free Economic Zone and Korea Trade-Investment Promotion Agency attracted more than $500 million in investment from 12 foreign companies.
Republic of Korea also inked memorandums of understanding (MOUs) totaling $506 million with 12 foreign investors, including New World TMT, a Hong Kong-based venture capital firm that agreed to invest $120 million in a domestic IT venture company, the Ministry of Commerce, Industry and Energy (MOCIE) said.
Also, Meg Whitman, chief executive of the world's biggest online marketplace firm eBay, disclosed her company's plan to set up its Asia-Pacific regional headquarters in Korea by next January, describing Asia, especially Korea, as a big investment opportunity.
The ministry expects eBay's positioning of regional headquarters in Korea to generate over 1 trillion won in value added, and help the country grow into a global e-commerce Mecca.
Other investors included Magna, a leading global supplier of technologically advanced automotive systems, components and complete modules; Illinois Tool Works (ITW), a designer and producer of an array of highly engineered fasteners, components, equipment and consumable systems; and Toyo Gosei, manufacturer of fine chemical products.
According to the MOCIE, more foreign industrial giants and ICT firms are expected to move into Korea, which is now rated as one of the fittest test beds in the world for high-tech and biotech companies, thanks primarily to its superb IT infrastructure and rich Internet and mobile savvy customer base.
Some 6,000 visitors to Busan, including presidents, prime ministers, entrepreneurs, investors and scholars from the 21 APEC member economies were courted by Korea's advanced technologies in intelligent robots, wireless broadband Internet and next-generation mobile handsets exhibited at the Busan Exhibition and Convention Center (BEXCO).
The host venue Busan, the nation's second-biggest city in the southeastern tip of the peninsula, alone signed MOUs with three foreign firms, including Sweden's SKF that decided to invest a total of $136.6 million in the Busan-Jinhae Free Economic Zone (FEZ).
The Busan-Jinhae FEZ Authority expects to attract more FDI later as dozens of foreign entrepreneurs showed interest in the tariff free zone offering charming incentives, and in the FEZ's new modernized port that will house 30 berths by 2020.
A growing influx of foreign investment in the FEZ is forecast to propel Korea's bid to emerge as a logistics hub of Northeast Asia.
Improved international awareness of Busan as the successful host city of APEC is also forecast to facilitate the city's efforts to drum up worldwide support on its bid to host the 2020 Summer Olympics as foreign CEOs extolled the well-orchestrated programs of this year's APEC meetings.
Korea also capitalized on its well-arranged APEC events, such as the CEO Summit that gathered a record high number of participants with over 800 entrepreneurs worldwide, by promoting its distinct culture.
Various cultural performances during the APEC week also enabled Republic of Korea to succeed in signing an agreement with New Zealand to cooperate in film and television industries, a pact that will help Korea stretch the Korean Wave, or “hallyu,” that is sweeping the Asian region, to Oceania and other parts of the world.
The source of news : Korea.net November 24, 2005
