South Korea expects to double its direct investment in Thailand this year, as Korean companies look to set up "green" industry bases for overseas expansion. Hong Ji-hee, vice president of the Korean-Thai Chamber of Commerce and the consultant in Thailand for the South Korean president, said yesterday that his country's direct investment here had grown significantly in the past few years thanks to closer cooperation in both the cultural and economic areas.
Korean investment in the Kingdom should double this year from last year, when it skyrocketed by 382 per cent, she said. In the first four months of the year, the Board of Investment approved privileges for 12 companies with a combined initial capital investment worth US$99 million (Bt3 billion). Hong said direct investment from her country had grown by at least 30 per cent annually in recent years. Many Korean firms are interested in expanding their businesses here due to closer cooperation between the two countries in many fields.
Seoul's agenda to promote cultural and economic growth outside the country has also encouraged more Korean firms to explore opportunities overseas. "Thailand is one of the high-potential markets for becoming a manufacturing base for many of our industries," she added. In Thailand, Korean companies are interested in investing in green-energy production, businesses related to environmental development and high technology, cultural businesses, cosmetics, healthcare and restaurants. Thai-Korean free-trade talks have also boosted trade and other activity during the past five years.
For instance, the number of travellers from Thailand to South Korea has grown by double digits annually since 2004. The number is expected to rise from 261,000 visitors last year to 300,000 this year, an increase of 15 per cent. During the first four months, the number of visitors soared 34 per cent year on year to 121,000. Meanwhile, Korean travellers to Thailand are expected to reach 960,000 this year, a rise of 19 per cent. There was a 30-per-cent surge to 439,670 visitors during the first four months of the year, generating Bt24.6 billion in foreign-exchange income. "More Korean visitors will come to Thailand following the stability that has returned after the political conflict that damaged travellers' confidence," Hong said, adding that the number had topped 1 million annually prior to 2008.
As part of the countries' closer cultural cooperation, the taekwando "K-Tiger Show" will be held in Bangkok on June 25 at the Siam Niramit theatre. The show has been arranged to commemorate two important events: the 61th anniversary of the outbreak of the Korean War, and 53 years of diplomatic relations between South Korea and Thailand. In addition, it is expected to help boost trade, investment and closer cooperation in a variety of areas, including sport. Hee Jong-sung, taekwando master for the Guards of the Thai Royal Family, will be one of the performers. Proceeds from the event will be donated to Her Royal Highness Princess Maha Chakri Sirindhorn's orphanage foundation.
Source: nationmultimedia
