Lee to Bring Massive Investment From Japan, U.S.

Lee to Bring Massive Investment From Japan, U.S.. April. 14, 2008 18:53. abc@donga.com bae2150@donga.com.

President Lee Myung-bak is expected to sign memorandums of understanding (MOUs) with ten foreign firms to bring a combined investment worth $2 billion (about 1.96 trillion won) to Korea, during his eight-day tour of the United States and Japan beginning April 15.

As the first and largest foreign investment facilitation success by the new government, it is raising hopes for businesses over the president’s "business-friendly" policy, which seems to have tangible effects on foreign investors.

According to business representatives and several government officials on Sunday, President Lee’s entourage will hold the “Korea Invest Forum” in New York City and Tokyo, on April 16 and 21, respectively. The event will be jointly hosted by the Ministry of Knowledge Economy, the Korea Trade-Investment Promotion Agency and the Federation of Korean Industries.

Representatives from both the central and local governments are expected to sign a series of MOUs at the forum with foreign firms to bring investment to Korea.

In the forum in New York City on April 16, Knowledge Economy Minister Lee Yoon-ho and Gyeonggi Governor Kim Moon-soo will sign MOUs with companies from five industries, including logistics and distribution, auto parts, chemicals, real estate development and game, to attract a total of $1.2 billion investment.

In particular, Gyeonggi Province will conclude an MOU with a U.S.-based global logistics firm that will include the construction of a logistics facility worth $1 billion in Korea.

The forum is expected to further facilitate investment as major Korean firms, such as Samsung Electronics, LG Electronics, SK Energy, Hyundai Motor and POSCO, are scheduled to hold their respective investment relations (IR) presentations on the same day.

In the ensuing forum in Tokyo on April 21, Minister Lee and North Gyeongsang Province Governor Kim Gwan-yong will induce foreign investment worth $800 million by signing MOUs with five companies including Asahi Glass ($150 million).

By 2010, Asahi Glass is expected to expand its factories in Gumi, North Gyeongsang Province, to produce glass for LCD panels.

Meanwhile, President Lee is scheduled to attend a luncheon with 20 CEOs and top executives of multinational firms such as Merrill Lynch, Citigroup, JPMorgan, Pfizer, Google and DuPont, right before the investment forum in New York City. He is expected to engage in what is described as “sales diplomacy” to promote investment to Korea during the luncheon.

The president will also reportedly address the investment forum to introduce Korea’s policies to facilitate foreign investment in an English speech.

Although he cannot attend the forum in Tokyo due to his schedule, he will attend a luncheon on April 21 with representatives from the Japanese Federation of Economic Organization, which is equivalent to the Federation of Korean Industries.

The active participation of President Lee in the forums has attracted great attention in both the United States and Japan.

Some 500 to 600 foreign investors including securities analysts and local businessmen signed up for the forum in New York City, far above 300 estimated by the organizers. In Tokyo, around 300 local investors also signed up for the forum.

An official from the presidential entourage said, “Usually, only about 200 investors turn up for investment forums in the United States, even when meals are offered. This time, however, many investors showed interest in the forum even though meals are not included."

The business circle is greatly invigorated by the immense attention directed to the forums. An FKI official said, “When former President Roh Moo-hyun held an investment forum on his visit to the United States in May 2003, he himself was not present in the event and no investment MOU was signed.”