Nov. 4, 2009 (The Korea Times) -- By Choi Kyung-hwan
Minister of Knowledge Economy
When it comes to high rates of unemployment, Korea is not alone. In recent years, globalization seems to be playing a significant role in employment trends. As more businesses go global, they tend to move their operations overseas in search of a less expensive or more skilled workforce.
One way to create jobs is to encourage more inbound foreign investment. According to the Bank of Korea last year, foreign direct investment (FDI) generated 155,000 jobs between 1999 and 2007.
In addition, a private research institute reported that FDI accounted for 20 percent of increased employment between 2000 and 2004.
The case of Ireland illustrates this point vividly. In the late 1990s, Ireland achieved an astonishing level of economic growth.
The secret behind its impressive 9.9-percent annual growth rate was the Irish government's aggressive strategy to attract foreign investment. Singapore and Hong Kong also grew rapidly compared with their neighbors thanks to their governments' strong commitment to attracting FDI.
The Korean government's FDI policies underwent significant changes in the wake of the Asian financial (NYSE:DYP) crisis in the late 1990s, which heightened awareness that foreign investment is crucial for sustained economic growth and job creation.
Accordingly, Korea is providing foreign investors with various incentives ranging from tax breaks and cash grants to discounts on land rental fees. We also have an ombudsman system in place to address the concerns of foreign-invested companies here.
Foreign investors may have different reasons for choosing Korea, but the presence of a highly skilled labor force is a factor that cannot be ignored.
According to a recent OECD report, Korea has the second-highest percentage of university graduates in the world - within the 25- to 34-year age bracket, 56 percent have university degrees.
Surveys of foreign investors also show that skilled labor is one of Korea's greatest strengths as an investment destination.
Yet, foreign-invested companies still have difficulty recruiting talented workers. Job seekers, meanwhile, need timely information so they do not lose out on job openings.
To connect companies with qualified job seekers, the government has been holding the Job Fair for Foreign-Invested Companies every year since 2006. This year's fair will run Nov. 6 and 7 at the D-II Hall at COEX in Seoul, and 90 foreign businesses are scheduled to participate.
They include globally acclaimed companies such as Nestle, Google (NASDAQ:GOOG) and Bosch. I truly hope foreign-invested companies and aspiring employees will take an interest and choose to participate.
In the "Analects of Confucius," there is a saying that goes: "If people under your reign are happy, people will be attracted to come from afar." In that spirit, I am confident that the Korean government's proactive efforts to improve the business environment will attract many more foreign investors.
