Local Firms to Invest More in Research This Year
R&D investment by Korean companies is expected to edge up this year amid the prolonged economic slowdown, a poll showed last month.
Combined investment in R&D is expected to reach KRW 10.2 trillion in 2013, up 7.3 percent from last year, according to a survey of 334 firms conducted by the Ministry of Trade, Industry & Energy. The figure translates to KRW 30.8 billion for each company.
The average amount of R&D investment by large companies is forecast to hit KRW 98.28 billion, up 7.6 percent from last year. The average amount of R&D investment by small- and medium-sized enterprises is anticipated to reach KRW 10.42 billion and KRW 6.13 billion, respectively, up 2.8 percent and 9.6 percent from the previous year.
About 53 percent of respondents said they intend to increase their R&D investment this year, while 35 percent said they will invest the same amount of money they did last year.
Medical Tourists in Korea Last Year Spent KRW 350 Billion
Medical tourists in Korea last year spent KRW 350 billion, according to a survey of 1,319 foreign patients conducted by the Korea Tourism Organization (KTO).
About 150,000 medical tourists visited Korea last year, up 30,000 from 2011. Notably, the number of Chinese medical tourists increased 76.5 percent compared to 2011.
According to KTO’s estimation, the expenditures of foreign medical tourists reached KRW 350.9 billion, with medical expenses accounting for 57 percent.
“The government is also seeing medical tourism as a new growth engine. We will conduct a survey annually to set up a detailed investment promotion strategy,” said Kim Se-man, Director of KTO’s Medical Tourism Division.
Foreign Investment Promotion Policies to Focus on Job Creation
The Ministry of Trade, Industry & Energy (MOTIE) is taking bold measures to shift the focus of foreign investment policies from largescale investments to investments that create decent jobs.
MOTIE is analyzing the local and international best practices of job creation to turn such practices into law. It is also considering benchmarking Japan, which has enacted the Act on Special Measures for Promotion of Research and Development by Certified Multinational Enterprises. This stipulates tax incentives for investment by multinational companies. Based on this, the ministry plans to provide incentives for service companies, which could create a large number of jobs. Main targets will include global R&D centers, tourism and leisure industries and high value-added services.
The government aims to host the regional head offices of global companies or international organizations, such as the Green Climate Fund, which will be located in Songdo, Incheon. As for investment in tourism and leisure, it plans to draw more projects to locations like Alpensia in Pyeongchang, as such investment is concentrated in Jeju Island and Songdo. The government will also provide incentives for regional logistics and medical development projects, including the development of New Busan Port.
Differentiated incentives will be provided in accordance with a foreign- invested company’s contribution to job creation. Foreign investment in innovative start-ups, small but strong companies and new growth engine industries will receive preferential treatment even in the event that they don’t create a large number of jobs.
As of 2010, foreign-invested enterprises in Korea accounted for 13.6 percent of domestic revenues, 13.2 percent of added values and 6 percent of employment.
President Park Emphasizes Deregulations and Barrier Removal
Korean President Park Geun-hye unveiled her plans to “ease regulations and remove barriers” in order to revitalize the country’s economy at a ceremony marking the 40th Commerce and Industry Day at COEX in Seoul last month.
She showed her commitment to establishing a creative economy based on science and technology, adding that there will be a second miracle of the Han River through economic democratization.
The president also emphasized that the government will ease regulations and remove barriers, so that any individuals or businesses with good ideas can translate those ideas into products and services. She added that the removal of barriers between government agencies would provide businesses with more convenient one-stop services, which would eliminate the hassle of going back and forth between agencies or between central and local governments for approval.
Source : Invest Korea