[DBiK 2023] Tax certainty, labor reform, better IP protection will help Korea become Asia's business…
labor reform, better IP protection will help Korea become Asia's business hub:
Lee Kyung-min, The Korea Times - Greater policy certainty in corporate taxes,
flexibility in the labor market and enhanced intellectual property (IP) rights
are needed for Korea to become a regional business hub in Asia, according to
the American Chamber of Commerce in Korea (AMCHAM Korea), Wednesday.
relocation of regional headquarters of global firms to Korea in that sense is
about more than greater job opportunities here, according to the group representing
the interests of U.S. firms operating in Korea. Rather, the objective is more
about having senior executive positions with key decision-making authority, as
well as about more effective supply chain management and increased trade flows
above benefits illustrate the critical importance and the significant economic
ramifications of establishing Korea as a regional headquarters in business, the
challenges represent a transformational change for Korea, which the AMCHAM
members welcome as an opportunity to work closely with the Korean government to
execute, as underpinned by the policy backing of the Yoon Suk Yeol
Korea a regional hub in Asia is about the centralization of key entrepreneurial
and value-creating business activities in Korea," Henry An, chairman of
the AMCHAM Board of Governors and senior partner at Samil
PricewaterhouseCoopers, said during the fifth AMCHAM Doing Business in Korea
Seminar 2023 at the Grand Hyatt Seoul.
the attendees were distinguished guests, including officials of the U.S. and
Korean governments and representatives from domestic and foreign firms.
theme of Wednesday's seminar was "Mapping the Path to Success: The Case
for Making Korea a Regional Hub."
AMCHAM board chairman said it would be helpful to foster an environment of
greater tax certainty, and added that Korea ranks much lower than other
regional hubs when measured by labor market flexibility.
organizations with greater flexibility in their ability to recruit and downsize
as well as manage work hours would greatly improve the overall business
environment in Korea," An said during a session.
Korean government, he added, should deregulate privacy and data-related
policies to facilitate seamless cross-border data flows which in his view is
key to advancing the digital economy. Unlike Japan, Singapore and Hong Kong,
Korea continues to mandate data localization, an area in need of policy
improvement, he added.
financial services, further financial regulatory reform is needed for Korea to
follow global standards.
are higher CEO risks compared to other regional hubs, as Korea's level of
punishment for CEOs is significantly severe.
believe it will be beneficial and more effective to reduce the scope of CEOs'
criminal liability by shifting the focus from punishment to prevention,"
government should improve the enforcement of IP rights which he views as key.
for environmental, social and corporate governance (ESG) considerations, An
asked the government to revise its stance on renewable energy accessibility,
women's economic empowerment and corporate disclosure requirements to better
maintain consistency with global sustainable goal standards.
all of these asks will represent no small feat for the Korean
governments," he said. "But demonstrating progress would go a long
way in attracting the world's leading multinational organizations to
CEO James Kim said, "With the upcoming U.S.-Korea summit in April, Korea
has a lot at stake in establishing itself as a true global leader. AMCHAM fully
endorses President Yoon Suk Yeol's vision to turn the Korean economy into a
digital powerhouse that drives innovation and cutting-edge technologies."
of Trade, Industry and Energy Lee Chang-yang said the global trade environment
is evolving rapidly, as all countries are devoting their resources into
revamping their high-tech industrial supply chains.
U.S.-Korea bilateral economic alliance must be stronger than ever," Lee
said. "The U.S. and Korea have been working to promote common core values
and are the best collaborative partners for fostering high-tech industries and
driving supply chain management."