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"Direct Investment to Korea"


Yetserday (Nov.12,2011), I attended monthly seminar by AIBA. The subject was "Direct Investment to Korea" now and then. Held in Tokyo Metropolitan facility related to Trade, near Takeshiba-sanbashi, Hamamatsucho.
The lecturer is current JETRO Investment Adviser who belongs to AIBA.

The foundings; ONLY 1/3 cost level of Electricity and 1/2 Corporate TAX (24.2%) in Korea ; those are amazingly big Gaps with current Japan. Thus, learned a lot, and come to know that some big Japanese names already did FDI, built & operate in Korea now.

The KEY Message is that; Utilizing those Pros; such as -lower Electricity cost ^^) and - half level Corporate TAX ^^),etc., those Japanese companies who support/supply low and intermediate level industrial materials to Korean finish goods' Manufacturers, most likely 'tends to' expand FDI to KOREA.

- Some may recall the latest news release that Softbank group make alliance with KT and join Data Center service business. Mr.SON, president of SB told that big merit of Electricity cost in Korea, likewise.
This means; to build Operational Factories "inside Korea" and make materials "inside the Korea" and supply to KOREAN companies; which surely contribute to - shorter TAT and - lower cost efficiency on their business, if working with Korean campanies as the circle of supply chains.
I think this makes big sense.