Foreigners` Direct Investment Is Increasing

The direct investment by the foreigners in June has been tallied as 1 billion 226 million dollars, which is 3.7 percent increased from the same period of last year. The foreigners direct investment has increased for the first time in this year.

To promote the foreign investments, the government is planning to subsidize the half of the employment subsidies paid by the local government to the laborers of the foreign enterprises in the Foreigners Industrial Complex.

According to a source released by the Ministry of Commerce, Industries and Energy The Trend of the Foreigners Investment in June 2001, the foreigners’ investment has reversed getting out of the continuing decrease since February this year. However, the number of the investments by the foreigners has decreased to 330 compared to 437 reports of the foreigners’ investment in June last year.

Accordingly, the total foreigners investment in the first half of the year recorded 6.7 billion dollars, which is 16.8 percent increased from 5.736 billion dollars of the same period of last year. The number of the investments was 1966, which is decreased by 6.5 percent.

While the investment of the EU has increased 107.7 percent in the first half of the year, the investments by the U.S. and Japanese investors have decreased 26.4 percent and 61.6 percent respectively.

As a result, the EU ranks at the top of the foreign investment (1.77 billion dollars, 25.5 percent), followed by the U.S. (765 million dollars, 11.4 percent) and Japan (395 million dollars, 5.9 percent).

To accomplish the planned introduction of the foreign capital 15 billion dollars, the government will designate a new Foreign Industrial Complex in the Jinsa Complex and expand the area of the Foreign Industrial Complex in the Daebul Industrial Complex, South Cholla, and the Pyongdong Industrial Complex in Kwangju.

To monitor the labor-management conflicts, the government will establish a labor expert team for the Japanese business and will dispatch labor directors and police officers to the office in the Complexes.

In addition, to promote the investment and cooperation relationship with the major consulting companies of the strategic regions for the introduction of the foreign capitals such as the U.S., EU, and Japan, the government will hold a briefing session to the Japan`s Nomura Research Institute.

Kim Sang-Chul sckim007@donga.com