Seoul promotes Japanese biz investment to reduce trade deficit

By Lee Joon-seung
SEOUL, Nov. 17 (Yonhap) -- South Korea's government said Monday it is supporting
a business investment tour to Japan to help reduce Korea's mounting trade deficit
with the neighbor.
The five-day-long tour that began earlier in the day is designed to get Japanese
parts and materials manufacturers to come to South Korea's free economic zones
(FEZ) and will highlight the advantages of investing in the country, the Ministry
of Knowledge Economy said.
Attracting Japanese investment to FEZs in Incheon, Busan-Jinhae, Daegu and Gunsan
could help improve Seoul's trade deficit with its neighbor, which has ballooned
to US$28.9 billion in the first 10 months of this year, the ministry said.
The imbalance is expected to exceed a record $30 billion by year's end. The
figure was just over $29 billion in 2007.
South Korea's chronic trade deficit with Japan is mainly due to its reliance on
key parts and industrial materials.
The ministry, which is in charge of trade and industrial policies, also said that
investment by Japanese parts companies could bolster bilateral technical
cooperation, enhance the competitiveness of local manufacturers and lay the
foundation for similar tie-ups with U.S. and European firms.
"The roadshow is to be attended by at least 40 companies that have expressed
interest in building plants or expanding their business presence in South Korea,"
a government official said earlier.
Without going into detail, the official said that two companies are set to sign
memorandum of understanding pacts totaling US$40 million.
Talks will also be held with NH Techno Glass and Sonix Japan, he added.
NH and Sonix have already announced future investment plans totaling $700 million
and $300 million, respectively. South Korea hopes to secure all or part of those
investments.
The ministry, meanwhile, said an export convention between South Korean companies
and Japanese importers is to be held on the sidelines of the tour that may result
in $100 million worth of new export orders.
Fourteen companies -- including Samsung Electro-Mechanics, Dongyang Mechatronics
and Sungbo P&T -- are to sign export deals for parts and components, it said.
The ministry is sponsoring the tour along with state-run Korea Trade-Investment
Promotion Agency, the Federation of Korean Industries and regional
administrations. Business presentations are to be held in Tokyo, Osaka, Nagoya
and Fukuoka.
yonngong@yna.co.kr
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