Mr. Alan Timblick, Head of Invest KOREA

In the following interview with Mr. Alan Timblick, Head of Invest KOREA, he states, "Korea has a huge domestic economy, which is why this country has the potential to serve as a regional strategic base for multinational companies. Mr. Timblick further stresses, "Korea has every reason and potential to become a hub of North East Asia." To this end, Invest KOREA is working closely with the Presidential Committee on Northeast Asian Cooperation Initiative and the Ministry of Commerce, Industry and Energy on this issue. During the interview with The Korea IT Times, the Head of the national investment promotion agency emphasized, "I think you can label Korea as the IT hub of this region because Intel, HP and Motorola have already established R&D facilities in Korea and we expect more to follow with strong government support and the attraction of our skilled workforce. As well as Korea's prospects about becoming a regional hub, The Korea IT Times also spoke with Mr. Timblick on the performance of Invest KOREA performance to date. Q: What have been the results of Invest KOREA's investment attraction activities since you began your tenure as Head of the agency Since Invest KOREA was established and I was appointed as Head of IK on December 5, 2003, I have spent one-third of my working time overseas. Throughout my 63 business trips, I traveled to 26 destinations worldwide to pursue investment promotion activities. These activities include investment IR sessions, joint road shows with related ministries and local governments, global conferences and meetings with some 80 multinational companies. The results were fruitful. Last year, Korea's inbound FDI jumped 97% compared to the previous year, amounting in total to US$12.8 billion, the first upturn since 1999. Q: We believe that Korea has the potential to be a strategic base for Asia and huge consumer market for foreign-invested firms. What do you think about the prospects of Korea in this regard Korea does have a huge domestic economy, which is why this country has the potential to serve as a regional strategic base for multinational companies. Korea boasts the 10th biggest economy in the world in terms of GDP while its trade volume is the 12th largest. Not only is the economy sizable, but also consumers are highly demanding and critical. This is the core reason why industries such as IT, cosmetics and film productions use Korea as a test bed and regional base. Q: How does Invest KOREA support foreign firms that want to invest in Korea Invest KOREA has a two-phrase support system. First, IK's investment promotion team assists investors, either potential or established, with every inquiry they may come up with from the tax system to market evaluation. This is where our Project Managers (PMs) play a significant role. PMs travel overseas to inform investors about the latest changes in the market and also travel with them domestically for factory site visits or meetings with government officials. Once an investment is made, we have an after-care service through which the Investment Ombudsman, who is appointed by the president, and a team of home doctors work closely with companies to resolve their grievances. Q: What are the current trends in foreign direct investment into Korea, and what is the outlook for the future After years of sharp falls, recent trends and conditions hint that global FDI may be picking up for the next few years. The world's total flows of FDI may grow faster than global GDP does in the next five years. Korea is in a good position with a sizable economy, world-class multinational companies, strong IT industry and a systematic support system. We expect to attract about the same amount of FDI in 2005 as we did in 2004, but competition is fierce. Korea is not the only Asian country willing to become a major hub and key player in this region. All countries have established an investment promotion agency and introduced investment stimulus packages and incentives. Positive signals do not necessarily guarantee successful inbound investment and this is where Invest KOREA will be concentrating its efforts. Q: What is your opinion on the state of living conditions in Korea for foreign businesspeople and their families Living conditions in Seoul are no different from those in other major global cities such as New York, London or Hong Kong. Foreigners used to complain about education, hospitals and leisure activities but we have seen some great improvements in recent years. The Korean government also launched a 5-Year Plan to improve living conditions for foreigners in Korea, which is already making headway with some remarkable projects such as the new foreign school. Traffic and language may still be viewed as problematic but on average, Seoul and Korea have better conditions than most of the other major Asian cities, while continuous improvement is underway. Q: Would you comment on the prospects for Korea's North East Asian hub project Korea has every reason and potential to become a hub of North East Asia. Invest KOREA is working closely with the Presidential Committee on the Northeast Asian Cooperation Initiative and the Ministry of Commerce, Industry and Energy on this issue. I think you can label Korea as the IT hub of this region. Intel, HP and Motorola have already established R&D facilities in Korea and we expect more to follow with strong government support and the attraction of our skilled workforce. A project to realize a logistics hub in Korea is also underway. Three Free Economic Zones (FEZs) are making vigorous efforts on this matter. The financial hub project has been slow in terms of noticeable outcomes but the establishment of the Korea Investment Corporation (KIC) will attract attention and investment. Recent mega investments by Citigroup and Standard Chartered Bank also suggest that the potential this country has in the financial sector is enormous. Q: What kind of overseas investment promotion activities is Invest KOREA planning this year Invest KOREA will be doing all that we did last year. This year, however, we will create some programs that are targeted toward building a stronger and positive national image. We will coordinate these programs into our regular investment promotion activities. Invest KOREA also plans to go on joint road shows with the Federation of Korean Trade Unions (FKTU), foreign chambers of commerce and successful multinational companies operating in Korea to generate the maximum amount of synergy.