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# October 27, 2004
# Korea Times
# By Park Chung-a





Governor of Kyonggi Province Sohn Hak-gyu, third from left, gives a speech in an investment seminar organized by the European Union Chamber of Commerce and Kyonggi Metropolitan Government at the Grand Hyatt Seoul, Tuesday.



Governor Sohn Hak-kyu of Kyonggi Province on Tuesday emphasized his region’s determination to become a worldwide center for the automotive industry.

He made the comment in an investment seminar organized by the European Union Chamber of Commerce and the Kyonggi Metropolitan Government at the Grand Hyatt Seoul in Seoul with the participation of 30 CEOs of high-technology manufacturing-based multinational companies from Europe, the United States and Japan.

The seminar informed multinational companies about the merits of Kyonggi Province, including its strategic location in Northeast Asia, the convenient transportation from the metropolitan area, a GRDP growth rate of 10.2 percent or twice the national average, a huge market consisting of a population of 23 million people, foreign investment incentives and various other support plans including English Village programs aimed at strengthening the communicating skills of local workers.

In an interview with the Korea Times, Sohn emphasized the province’s potential to become an important production base for the automotive industry.

``Kyonggi Province is currently holding the KOAAshow, an international exhibition for the auto parts industry. With Hyundai Motor and Kia Motors aiming to become the world’s fifth largest automotive group by 2010 and the automotive industry becoming more and more IT-oriented, Kyonggi Province has been successful in attracting foreign investors in this sector,’’ Sohn said.

``This exhibition will provide an opportunity for Korea to establish itself firmly as the Mecca of the world’s auto parts industry. Next year we will hold the international exhibition in KINTEX, the largest exhibition hall in Korea,’’ he added.

According to the National Statistical Office, 25.5 percent of total automobile and engine manufacturers and 22.9 percent of total auto parts in Korea are concentrated in Kyonggi Province, and the ratio is expected to increase. In July, Delphi invested $22 million and established its R&D center in the province. Also, multinational auto parts companies such as BorgWarner, TRW, Lear Corporation, Du Pont, Johnson Controls, Bosh are set to expand their investment in the region.

``Other than automotive parts manufacturing, we also focus on other manufacturing-based industries, including the LCD industry and the IT industry. We will continue to strive to make a business-friendly environment and become an active region promoting foreign investment from high-technology companies based on our abundant human resources and geographical advantages,’’ Sohn said.

Regarding the Supreme Court’s recent ruling against the government’s capital relocation plan, Sohn said that the decision was not only a matter of law, but also reflected the general feeling of the public.

``Moving the capital would involve too much sacrifice for the economy. It would not be cost-effective at all. I welcome the court’s decision and believe we should respect it. Along with Seoul, Kyonggi Province will flourish as a center for business in Northeast Asia.’’ he said.

Kyonggi Province held a similar investment promotion seminar for foreign companies in February, which resulted in attracting many foreign investors.

Up to now, 52 foreign companies have decided to invest a total of $12.8 billion in Foreign Investment Zones, including Poseung and Hyeongok, and other regions of Kyonggi Province. In addition, seven high-technology foreign companies are planning to invest a further $400 million during the first half of next year. Over the past few years, foreign investment in Kyonggi Province has created more than 23,000 new jobs, which in turn are playing a significant role in activating the regional economy.



michelle@koreatimes.co.kr