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According to Yonhap News,
(CHEONGJU = Yonhap News) While non-capital regions of South Korea have seen a drastic decrease in foreign direct investment (FDI), investment in the North Chungcheon Province (Chungbuk) has increased under 5th popularly elected government.
According to Chungbuk’s announcement on 24th, the amount of investment agreements between foreign-based companies and the province reach about USD 1.7988 billion under the current government.
The province recorded USD 821 million between July and December of 2010. The amount reduced to USD 140 million in 2011 but soon recovered and reached USD 258 million in 2013. Between January and October, this year the figure sharply increased to USD 650 million.
The figures are higher than the 3rd popularly elected government (USD 1.149 billion) and 4th (USD 1.13 billion) by 55.6 percent and 58.2 percent, respectively.
The actual amount of investment has seen a tendency of increase after the investment agreement was concluded.
During the 3rd and 4th popularly elected government the amount invested was USD 224 million and USD 330 respectively, but it jumped to USD 1.129 billion in the 5th.
A leading industrial pump manufacturer of the U.S. invested some KRW 100 billion in Oksan Industrial Complex on 8th in October, and Japan’s company J which produces the LED parts established a research institute in O-chang Science Industrial Complex.
“While investment between other cities & provinces and foreign companies seem to be dull, Chungbuk has seen a high fulfilment of investments and seven out of 15 companies have invested in Chungbuk despite the fact that these companies still have about five years of performance period.” Official of Chungbuk said.
This allowed Chungbuk to be ranked “Ga” in the fields of MOU performance, support of foreign companies and site visit effort in Government Assessment 2013.
The province seems to be satisfied by the result as foreign investments in non-capital regions has decrease by more than 50 percent and concentration in the capital regions has deepened during the last three years.
According to the member of the National Assembly Noh Youngmin, the FDI in the non-capital regions has dropped from USD 7.49 billion in 2011 to USD 5.99 billion in 2012, and only the amount of USD 1.78 billion was invested from January to June this year.
However, the FDI in the capital regions has recorded increments in 2011 (USD 6.18 billion), 2012 (USD 10.28 billion) and 2013 (USD 6.22 billion).
“The province will promote foreign investments to work as the leverage to the development of local businesses and conduct tailored investment promotion activities connected with bio, medical, solar energy and IT industries.” Official said.
Chungbuk also plans to induce more investment by enhancing follow-up supports for buinsesses, support the joint venture of local prospective firms with foreign companies, support of incidental expenses to foreign investment and establish small and medium foreign investment zones.
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Source: Yonhap News (Nov. 22, 2013)
** This article was translated from the Korean.