New head of AMCHAM pushes treaty on investment
JoongAng Daily, Korea
New head of AMCHAM pushes treaty on investment
by Lee Ho-jeong
19 January 2005
In his first address as chairman of the American Chamber of Commerce in Korea, Wayne Chumley said yesterday that the United States and Korea needed to make progress on a free trade agreement this year.
Mr. Chumley, who heads DaimlerChrysler in Korea, complained that the treaty, an instrument protecting foreign direct investment, has been on hold for too long and said it should be resolved by April before the Asia Pacific Economic Cooperation trade ministers’ meeting in June. He said once the treaty is signed, both countries would then be able to move on to negotiating a free trade accord.
In 1998, the administration of then-President Kim Dae-jung proposed the bilateral treaty to draw more investors to Korea. However, talks have stalled over Korea’s screen quota, which requires cinemas to run local movies 40 percent of the time.
Mr. Chumley said that Korea’s hosting of the Asia Pacific Economic Cooperation summit this year would be a great opportunity for Korea to promote itself globally. He said the investment treaty and free trade negotiations would provide confidence to foreign investors.
"While Korea remains a favorable destination for investment, the standards along which investors will base their decision for additional investment will depend on what Korea has to offer relative to its competitors," Mr. Chumley said.
The chairman said foreign direct investment in 2005 would likely outpace the $12.8 billion received last year — itself a four-year high.
Regarding concerns about hostile foreign takeovers, Mr. Chumley said it was understandable that Korea seeks to protect its own companies.
"However, we hope the contribution of foreign direct investment in Korea should not be overlooked...it continues to be a positive player in bringing much-needed capital, advanced technology, new management style and jobs," Mr. Chumley said.
