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[Press Release] ECCK President Attended a Meeting with Minister of Strategy & Finance
ECCK President Attended a Meeting with Minister of Strategy & Finance
Seoul, Korea February 12, 2014
Thilo Halter, the ECCK president, and Christoph Heider, secretary-general of the ECCK attended a meeting with Deputy Prime Minister Hyun Oh-seok, organized by Ministry of Strategy & Finance at 12:00 on Wednesday, February 12, at Lotte Hotel, Sogong-dong. The meeting was to hear difficulties and opinions from foreign investment companies and chambers of commerce.
The meeting was fruitful, said Mr Halter. He remained cautious, although he positively evaluated the initiatives to further improve the business environment.
Mr Halter delivered a brief speech, suggesting frequent and open communication with the government to improve the predictability of business environment in Korea. Below is the summary of his speech.
Summary of speech
The European business community wishes to be a constant and reliable partner with Korea. We are particularly interested in investment and cooperation in the areas of research & development, technology transfer, and knowledge exchange.
We also believe in a fair and competitive market environment where we can do our best to provide world-class products and services to Korean consumers.
Korea is in a competition with other Asian countries and cities including Hong Kong and Singapore to attract more foreign investment. Incentives and favourable measures are necessary to promote foreign direct investment.
Some issues have drawn our attention in terms of unpredictability in the business environment.
For example, audit: The intensity and length of audits have been increased. Moreover, their processes and decisions are not always consistent but open to different interpretations. The penalty trap comes in i.e. first, penalties are imposed by National Tax Service for allegedly too high transfer prices; then additional penalties are imposed by Korea Customs Service for too low import prices.
The impression of inconsistency and unpredictability may lead European headquarters to see investment in Korea risky.
To reduce such a risk, rules and regulations should be implemented in a transparent manner and be clearly communicated. The ECCK would very much appreciate it if we could open a regular feedback circle with Korean ministries to improve communication.
[Press Release] ECCK President Attended a Meeting with Minister of Strategy & Finance
Seoul, Korea February 12, 2014
Thilo Halter, the ECCK president, and Christoph Heider, secretary-general of the ECCK attended a meeting with Deputy Prime Minister Hyun Oh-seok, organized by Ministry of Strategy & Finance at 12:00 on Wednesday, February 12, at Lotte Hotel, Sogong-dong. The meeting was to hear difficulties and opinions from foreign investment companies and chambers of commerce.
The meeting was fruitful, said Mr Halter. He remained cautious, although he positively evaluated the initiatives to further improve the business environment.
Mr Halter delivered a brief speech, suggesting frequent and open communication with the government to improve the predictability of business environment in Korea. Below is the summary of his speech.
Summary of speech
The European business community wishes to be a constant and reliable partner with Korea. We are particularly interested in investment and cooperation in the areas of research & development, technology transfer, and knowledge exchange.
We also believe in a fair and competitive market environment where we can do our best to provide world-class products and services to Korean consumers.
Korea is in a competition with other Asian countries and cities including Hong Kong and Singapore to attract more foreign investment. Incentives and favourable measures are necessary to promote foreign direct investment.
Some issues have drawn our attention in terms of unpredictability in the business environment.
For example, audit: The intensity and length of audits have been increased. Moreover, their processes and decisions are not always consistent but open to different interpretations. The penalty trap comes in i.e. first, penalties are imposed by National Tax Service for allegedly too high transfer prices; then additional penalties are imposed by Korea Customs Service for too low import prices.
The impression of inconsistency and unpredictability may lead European headquarters to see investment in Korea risky.
To reduce such a risk, rules and regulations should be implemented in a transparent manner and be clearly communicated. The ECCK would very much appreciate it if we could open a regular feedback circle with Korean ministries to improve communication.
(ENDS)