Gyeonggi Inc.: A Korean Success Story

In December 2003, Shin Hyun-yong was sitting in front of a heater on an empty field in Paju, Gyeonggi Province. The LCD industrial complex of LG Philips LCD was to be built on the field after the provincial government managed to persuade local residents to sell their land, but construction was halted after Three Kingdoms-era artifacts were unearthed there.

Shin covered the 7,000-pyeong tract of land with vinyl and melted the frozen topsoil to expedite the excavation of the artifacts. That was done in order to resume construction as soon as possible.

Shin works for the investment promotion department of Gyeonggi Province. More than 100 officials have worked for the department, attracting and securing about $13.8 billion in investment and created about 50,000 jobs.

About 56 percent of companies that have promised investment in the province are operating facilities or building plants there.

By April 10, Gyeonggi Province will have secured 100 foreign corporation agreements in the 45 months since it began its effort to attract investment from foreign high-tech companies.

On that day, FCI, a French auto parts manufacturer, will sign on a memorandum of understanding (MOU) which states that the company will construct a plant and research and development center in Hwaseong, Gyeonggi Province by investing $10 million.

‘You’re crazy’-

Gyeonggi Province officials responsible for attracting foreign investment go on overseas business trips every two months, on average. They always carry with them two laptop computers, two printers, six ink cartridges and a box of copy paper on every business trip. That is preparation for a situation in which they cannot use local business centers.

During such trips, they sleep only three hours a day due to their tight schedules. They tour at least three to four countries on each trip. As their principle is to stay one night in one city, they sometimes take flights 12 times during 10 days.

They say that their worst schedule was a three-day visit to Axesstel, a U.S. phone manufacturer. They spent every night in flight during the trip. Knowing their schedule, a flight attendant said, “You are crazy.”

There was a story about LG Philips LCD’s decision to invest in Korea. The company chose Korea as its investment destination because Korean public officials answered the call the company made after midnight while the company was weighing whether to invest in Taiwan or Korea.

Come to Gyeonggi-

The militant labor union is one of the reasons that foreign companies hesitate to invest in Korea. To assure prospective investors, Gyeonggi Province contacted Lee Hwa-su, who leads the Gyeonggi area chapter of the Federation of Korea Trade Unions, and had him accompany its official on overseas business trips.

Lee said, “If foreign companies come to Korea and create jobs, it will be the most important labor movement.”

Seven officials responsible for attracting investment in Gyeonggi Province will fly to Paris tomorrow to sign an investment MOU with seven corporations. By the time they wrap up the business trip, they will have attracted 105 companies. During the four-day stay of this trip, they will visit seven cities and eight corporations.

Min-Young Kwak havefun@donga.com