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The Yeouido monetary district in Seoul, South Korea. NH INVESTMENT & SECURITIES
A majority of US companies in South Korea had been optimistic that funding within the East Asian nation will proceed over the subsequent two years, and picked Korea because the second most most popular location for regional headquarters in Asia after Singapore, survey outcomes confirmed on April 7.
In an annual survey of member corporations by the American Chamber of Commerce in Korea (AmCham Korea), 44 per cent of the respondents mentioned they’ll enhance funding in Korea via 2024, whereas one other 42.9 per cent mentioned there might be no change to their funding ranges.
Six per cent mentioned their funding will lower within the subsequent two years, and seven.1 per cent mentioned their funding outlook was unclear.
Greater than 80 corporations responded to the survey between February 24 and March 25, which was designed to assemble opinions on the enterprise surroundings right here forward of the inauguration of the brand new authorities and supply perception to make Korea a extra enticing funding vacation spot, AmCham Korea mentioned.
As for the present enterprise surroundings in Korea, 29.8 per cent mentioned it was good; 47.6 per cent mentioned it was common; and 21.4 per cent mentioned it was beneath common.
When requested about key areas for enchancment, for which respondents might select a number of solutions, practically 4 out of 5 (78.6 per cent) respondents picked Korea’s distinctive rules, adopted by CEO dangers (42.9 per cent), inflexible labour legal guidelines (42.9 per cent), excessive tax charges (25 per cent) and others (16.7 per cent).
As for the largest issue for companies in Korea, to which respondents might additionally select two or extra solutions, labour coverage (67.9 per cent) topped the listing, adopted by tax coverage (56 per cent) and CEO legal responsibility (46.4 per cent).
Solely 15.5 per cent selected immigration coverage and 13.1 per cent selected schooling coverage equivalent to international faculties as difficulties.
Barely over half (51.2 per cent) of the respondents mentioned authorities insurance policies had a adverse influence on their enterprise operations final 12 months, whereas one other 40.5 per cent mentioned the influence was impartial.
Solely 3.6 per cent mentioned they’d a constructive influence.
Virtually 4 out of 5 respondents anticipated to see average to vital change beneath the incoming authorities.
Two out of 5 corporations mentioned they didn’t meet their progress targets final 12 months resulting from Covid-related provide chain issues, unsure financial circumstances and different related points that hindered gross sales.
“AmCham is assured that President-elect Yoon Suk-yeol recognises the worth of making a worldwide funding surroundings to boost South Korea’s competitiveness. We are going to work intently along with his administration to make Korea the highest enterprise vacation spot for world corporations in Asia,” AmCham chairman James Kim mentioned.
AmCham plans to launch later this month a Korea-US FTA implementation scorecard that examines the considerations and strategies of the worldwide enterprise group in Korea in regard to the bilateral FTA.
THE KOREA HERALD/ASIA NEWS NETWORK
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