MOCIE MOCIE Minister Chung Sye-kyun Investment influx growing steadily There have been no unusual changes in foreign investments since North Korea's announcement of its nuclear test. Foreign chambers of commerce, such as the American Chamber of Commerce and Industry (AMCHAM), and the European Chamber of Commerce in Korea (EUCCK), indicated that their standpoint was not to suspend any planned activities. Foreign invested corporations also maintained their current projects, according to a Korea Trade Investment Promotion Agency (KOTRA) Overseas Trade Office's survey. In support of this position, Minister Chung Sye-kyun of the Ministry of Commerce, Industry and Energy (MOCIE) explained: "As of October 26, and since North Korea's nuclear experiment announcement on October 9, 2006, foreign investment reports indicate that figures are at a normal level of about US$430 million and that projects, such as Google and CalPERS, are progressing without any setbacks." In fact, Google announced plans to establish an R&D center in Korea on October 10, 2006, a day after the announcement of North Korea's nuclear experiment. Italy's Safilo, maker of luxury eyewear, also announced its affiliate corporation establishment plan on October 11, 2006. The California Pension Fund announced plans to invest $2.5 billion on October 16, 2006. Minister Chung has also assured that stability will not be compromised, stating: "The direct influence of the nuclear experiment announcement on foreign investment inflow will not be significant, provided that the state of affairs is not further aggravated." The Minister has also demonstrated confidence in the future of foreign direct investment (FDI) by committing himself to check investment trends at all times, teaming up with Invest Korea, foreign chambers of commerce in Korea, and the Korea Foreign Company Association (FORCA). MOCIE, among others, plans to concentrate its efforts on allaying fears abroad by keeping in constant touch with overseas investors and officials of credit ratings' firms to assure them of Korea's strong fundamentals, Chung said. The Minister further commented that MOCIE will bolster Korea's position as a stable investment environment by holding a round-table conference with foreign CEOs. This conference will be held on the occasion of the Foreign Investment Festival 2006 in the beginning of November. Taking investor concerns seriously, the government announced an FDI Mid- to Long-Term Vision and Strategy that contains the direction of foreign investment policy for the years to come. This FDI Mid- to Long-Term Vision and Strategy includes a plan to supplement qualitative issues, such as employment creation and technology development. Standard target industries, Chung said, will be parts and materials, R&D and logistics centers, and business services, like engineering. MOCIE will look for industries whose effects can greatly enhance industry structure competitiveness. Alongside this, he underscored that the government will continue to create an improved investment environment so that foreign investors can be accommodated at a steady pace. He also added that by driving forward free trade agreements with several nations, MOCIE will enlarge its foreign investment base. The Minister took note of the fact that in recent years, the trend of foreign investment leans toward higher amounts of investment by existing companies rather than initial investments by new companies. The relative importance of the increased amount of investments is on the rise from 60.8% in 2003 through 43.4% in 2004 to 66.5% in 2005. Chung stressed that this phenomenon can be attributed to the fact that foreigners find investments in Korea lucrative and that they have experienced a continuously improved quality of life. It is anticipated that foreign invested corporations, which have already made inroads in Korea, will continue to be profitable, increasing their investment amounts. To this end, Minister Chung has pledged his government's ongoing support to foster an agreeable investment environment.