[SEOUL G20 BUSINESS SUMMIT]Korea: Then, Now and Beyond

Having lived in Korea for almost three decades, it has been fascinating to witness the tsunami of change that has swept over this country. Gone are the wide open spaces that used to cover the land-scape when I arrived. These views have now been replaced by sophisticated, high-tech metropolises with towering skyscrapers, with everything and everyone connected through a ubiquitous, high-speed Internet. A state of the art infrastructure has emerged, with expressways, airports, high-speed rail and port facilities that are the envy of the world. But it was only six short decades ago that Korea lay in ruins, a war-ravaged wasteland, making this transformation one of the world’s most remarkable comeback stories.

Today, its achievements stand as a role model for both the emerged and emerging economies of the world, validating what is possible in a single generation. And that is why this geographically small yet dynamic country, through all its triumphs, rightly deserves its moment in the spotlight, as the host nation for this week’s G20 Summit.

For over 60 years, American businesses have been an integral part of the Korea miracle. But it has been Korea’s current quest for globalization, that has truly opened up opportunities for foreign and domestic businesses alike, on a more even playing field, enabling U.S. com-panies such as 3M, GM Daewoo, Boeing, GE, Visa, FedEx and many other major U.S. icons to prosper alongside their Korean peers.

The policies that have enabled these equalized opportunities for foreign business in Korea have been just as deliberate as the nation’s determination to seek a place for its own products in overseas markets. And this agenda has come from the top.

President Lee Myung-bak has committed his administration to creating a business environment conducive to nurturing best-of-breed, an objective that transcends nationalities. One of the president’s many significant accomplishments in this regard has been his establishment of presidential councils in a range of critical business sectors, to advise and guide the administration in this mission. One such example is his Presidential Council on National Competitiveness (PCNC) which meets monthly to discuss ways for Korea to improve its national and global competitiveness. From the outset, President Lee has personally ensured that the foreign business community has a voice in this forum and, as the AMCHAM representative to the PCNC, I have found this body to provide a truly unique opportunity for foreign businesses to have a voice in the determination of our collective future.

The policies that have come out of such forums, have transformed Korea’s business climate into an increasingly attractive investment destination for many foreign companies. The World Bank recently upgraded Korea by three notches to 16th place in its 2010 annual rankings, surpassing Japan and Thailand as the 3rd most favored place in Asia to do business. Another aspect which has and will continue to contribute greatly to Korea’s transformation is the country’s aggressive free trade policy. Currently, Korea has five free trade agreements in effect, three awaiting ratification including the U.S.-Korea Free Trade Agreement (“KORUS FTA”), seven under negotiation and eight in preparation.

The G20 Seoul Summit is significant for Korea on many levels. It will be the first time that many people will see Korea host an international event, outside the world of sport. What I believe they will discover is:

○ A country that has set ambitious goals in most every arena, and consistently exceeded them for the past 60 years. A record of credibility.

○ A self-made nation that has gone from abject poverty to economic leadership in a single generation, almost entirely driven by its human capital.

○ A nation that has straddled both deve-loping and developed nation status, that can equally represent the voice of nations both within and outside the G20.

○ An infrastructure and vibrancy that is as amazing as any place on the planet.

○ A country that is passionate about pro-moting free trade at home and abroad and more open and inclusive of foreign industry and foreign people than ever before.

From both an AMCHAM and personal perspective, this is an exciting time for Korea. With the prospects for a very successful G20, the much anticipated announcement between President Obama and President Lee regarding progress on the historic U.S.- Korea FTA, and the continued dynamism of the Korean economy, I have to say there is no better place to be right now than Seoul, South Korea.

David Ruch Chairman, American Chamber of Commerce, Korea