President Lee Jae Myung Says Geopolitical Risk Will Disappear, Vows to Make South Korea the World's Top Investment Destination

The Financial News reported that President Lee Jae Myung on the 28th encouraged investment from foreign-invested companies, stating, "Geopolitical risk on the Korean Peninsula will disappear, and we will thoroughly ensure fairness and transparency in the stock market."
At the roundtable with foreign-invested companies held at Cheong Wa Dae under the theme "Investment for the World, Leap for Youth, Growth for Regions," the president said, "The South Korean market remains undervalued, and its potential for future growth and development is very high." He added, "We will create an objective environment so that the Republic of Korea (South Korea) can become the world's best investment destination," and appealed, "Trust the government and join us in building the future."
Under the Foreign Investment Promotion Act (FIPA), a foreign-invested company is defined as a company in which a foreign investor holds equity above a certain threshold. The roundtable was attended by representatives from seven foreign chambers of commerce in Korea, including the American Chamber of Commerce in Korea (AMCHAM Korea), as well as executives from 31 foreign-invested companies.
Lee Jae Myung stated, "Foreign investment has been a key pillar of South Korea's economic growth and development, and I expect it will continue to play a very important role in the future." He went on, "We are already hearing that foreign investment increased sharply in the second half of last year, reaching a record high." He added, "The South Korean government warmly welcomes this all-time high level of foreign investment, and we will do our utmost to ensure that the expectations behind your investments do not turn into disappointment."
The president continued, "You may see a different side of South Korea's current economic situation compared with the past, including unprecedented volatility in the stock market." He noted, "The people of South Korea are surprised, and although I did anticipate that this would happen, I am also struck by how much faster it has unfolded than expected."
He also said, "The South Korean market remains undervalued, and at the same time, our human resources and physical foundations are extremely strong, so we are confident that the potential for future growth and development is very high."
Lee Jae Myung stressed that unfairness and a lack of transparency are negative factors for the economy, and he pledged to enhance rationality and predictability.
He said, "Peace on the Korean Peninsula is in fact extremely important, but there is no need to worry about that issue," adding, "For example, we will not unnecessarily escalate military confrontation or conflict with North Korea. Even if we make some concessions, we will maintain stability, and as a result, geopolitical risk on the Korean Peninsula stemming from peace and stability will disappear." He added, "We will in fact act this way going forward, and we are already doing so now."
Lee Jae Myung also vowed to actively pursue corporate governance reform. He said, "Just as the people are the owners of the state, shareholders are the owners of a company. But are shareholders really being treated as owners? I do not think so." He continued, "It does not seem properly democratic. We will therefore reform corporate governance to create a rational management and governance structure in which shareholders are properly respected." He added, "Can we allow the market to remain unfair and opaque? South Korea has suffered great embarrassment over issues such as stock price manipulation, but from now on that will not happen. We will rigorously ensure fairness and transparency in the stock market."
He also touched on balanced regional development. "The fact that the South Korean government is pursuing policies centered on regional areas will, I believe, serve as one of the reference points when you make future business and investment decisions," he said, adding, "We will also introduce many policies that give hope to young people."
At the roundtable, Minister for Trade Yeo Han-koo presented the joint government "policy direction for supporting foreign investment focused on youth advancement and regional growth." In particular, Yeo Han-koo said, "We will significantly strengthen incentives for investment in non-capital regions," and added, "For cash support incentives, we will increase the cash subsidy rate by at least 10 percentage points for investments located farther from the capital area."
cjk@fnnews.com Reporter Choi Jong-geun Reporter