Korea

Dr. Hwy-Chang Moon's picture

Why Is Vietnam Korea’s Favorite FDI Destination in ASEAN?

The Association of Southeast Asia Nations (ASEAN) has become a major destination for Korean foreign direct investment (FDI). In 2016, this region alone attracted about one half of Korea’s outward FDI (OFDI). Moreover, one half of Korea’s FDI flows within this regional bloc were concentrated in Vietnam. Korea is the biggest investor in Vietnam, far ahead of the second largest, Japan.

Wong MNC Center sponsors panel on China’s Evolving Trade and Investment Relationship with Latin America

The Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) sponsored a panel entitled “China’s Evolving Trade and Investment Relations with Latin America” at the Association of Chinese Political Studies 30th annual meeting held in June 2017 in Tianjin, China. Participants on the well-attended panel included Wong MNC Center Executive Director Dr. Jean-Marc F. Blanchard who spoke about Brazil’s foreign policy towards China, Mr. Javier Luque who analyzed the factors shaping Argentine-China investment relations, and Dr.

Dr. Amitendu Palit's picture

Will RCEP Promote Investments in the Asia-Pacific?

The Regional Comprehensive Economic Partnership (RCEP) is being looked upon as the most promising framework for regional economic integration in the Asia-Pacific Region (APR) after the United States (US) decided to withdraw from the Trans-Pacific Partnership (TPP). Negotiated by sixteen countries—the ten member states of the Association of Southeast Asian Nations (ASEAN), Australia, China, India, Japan, Korea and New Zealand, RCEP is not as ambitious as the TPP.

MNCs in the News-2017-02-10

China’s goal of shifting to a more consumption, service, and higher-valued added economy is reflected in subnational level data. China remains optimistic about Chinese outward foreign direct investment (FDI) in 2017, but plans to guide it to and sees it encountering many challenges. Syngenta believes the ChemChina-Syngenta acquisition will close in second quarter of 2017 despite remaining regulatory hurdles. China halts major Lotte construction projects in northeastern China in apparent punishment for South Korea’s embrace of THAAD. Prior to Japanese Prime Minister Abe Shinzo’s early February meeting with US President Donald Trump, Sharp Corp. announced it would build a liquid crystal display panel plant in the US. Softbank CEO Masayoshi Son touts his progress in fulfilling his job creation promise to U.S. President Donald Trump. Chinese forthcoming revised anti-monopoly guidelines worry South Korean firms which fear they might be used against it. In the face of political pressures, Samsung Electronics will build its first home appliance plant in the US despite fears about the price competitiveness of US production. Moody’s Investor Service upgrades its credit outlook for Indonesia with positive implications for Indonesia’s ability to attract FDI. Indonesian aviation regulatory burdens cause Tigerair to cease its flights to Bali island.

MNCs in the News-2017-02-03

Facebook’s efforts in China fail to deliver an opening. Japan’s Marubeni will build and manage one of the world’s largest mega solar power plants in the world in the United Arab Emirates. Japanese, Chinese, and Korean firms win multi-billion dollar contracts to improve and expand the capacity of Iranian oil facilities. Korean firms win main Turkish bridge building contract. South Korean firm Daewoo E&C re-signs road project in Qatar that might provide a beachhead for 2022 FIFA World Cup deals.

MNCs in the News-2017-01-13

China’s inward foreign direct investment (FDI) increases moderately over 2015, with a major proportion going into the service sector. Chinese outward FDI (OFDI) soared in 2016, hitting new records, with Europe, above all, Germany a key destination. Jack Ma meets with US President-elect Trump and touts Alibaba’s potential to create one million jobs. Takata pleads guilty to one criminal charge and will pay USD $1 billion in fines in conjunction with falsifying test data about its faulty airbags. Honda will invest USD $372 million in an existing facility in Ontario, Canada. Japanese energy producer JX Nippon Oil & Gas and NRG Energy Inc. complete the world’s biggest carbon capture system in Texas. Apparently prodded by Trump’s protectionist rhetoric, Samsung Electronics will build its first home appliance plant in the US. Indonesia modifies it mineral export ban policy because of its challenging economic growth situation. Indonesia and Japan will discuss business and investment cooperation during a visit by Japanese Prime Minister and during post-visit meetings between Indonesia’s President and a large delegation of Japanese CEOs

MNCs in the News-2017-01-06

China forces Apple to withdraw New York Times apps from its China App store. During a visit to Korea, Chinese Foreign Ministry official warns Korean businesses of possible adverse consequences because of South Korea’s adoption of THAAD system. US government report may result in tighter restrictions on foreign involvement in US semiconductor sector with particular ramifications for Chinese investors. There are doubts Chinese foreign direct investment (FDI) in the US will be able to maintain the same volume in 2017 as in 2016. Sri Lanka will strike agreements with Chinese investors to advance the Hambantota Port project, but large local protests dampen the atmosphere. Donald Trump blasts Toyota’s plans to invest in Mexico and sell to the US, with Japanese officials defending the contribution of Japanese firms to the US. While growing slowly, inward FDI (IFDI) into South Korea hits new heights with European Union (EU) investors representing a big proportion of investing firms. Indonesia remains optimistic about its ability to attract IFDI despite the fracturing of its partnership with JP Morgan Chase. Thailand plans new measures and new focuses in its efforts to reach new IFDI targets for 2017.

MNCs in News-2016-12-30

China plans to open various financial services sectors to foreign investors but details and timeframes remain unclear. Regulatory pressures inside and outside China may slow or reverse somewhat the pace of Chinese outward foreign direct investment (OFDI). Conditions at home and abroad plus drags on Chinese OFDI may lead Japan to become a more prominent outward investor in 2017. Takata Corp. may settle the United States (US) Department of Justice criminal case against it. Korea’s Fair Trade Commission slaps USD $900 million fine on Qualcomm for abusing its market power. Deal by Malaysian state owned firm for a palm oil project in Indonesia raises political concerns within Malaysia as well as some environmental and labor concerns.

MNCs in the News-2016-12-09

China’s Ministry of Commerce (MOFCOM) and National Development and Reform Commission (NDRC) have reduced the number of sectors on its foreign investment catalog restricted and prohibited lists by more than 30 percent. China’s State Administration of Foreign Exchange (SAFE) has denied there are restrictions on foreign firms' crossborder profit transfers. The NDRC has imposed a more than $17 million fine on Medtronic for violating China’s anti-monopoly laws. China’s national cybersecurity standards body, The Technical Committee 260, ignores foreign company pleas about its technical standards for operating systems, microprocessors, and office software. China’s concerns about capital flight and money laundering led it to strengthen its review of overseas deals exceeding USD $10 billion and in an overseas entity unrelated to the investor’s core business. China launches $22 billion fund to support overseas investments by Chinese companies. Chinese investment in Europe soars over 2015 totals. Softbank owner Masayoshi Son promises Donald Trump he will make a massive investment in the US. South Korea’s largest steel pipe producer buys two oil country tubular goods (OCTG) related facilitates in the US to escape possible US trade barriers. Indonesia’s Ambassador to Singapore encourages greater investment from Singapore, Indonesia’s largest foreign investor. Chinese investment in Indonesia soars, helping with infrastructure development, but raising some concerns. Chinese delegation from Zhejiang province to travel to Indonesia to assess the political risk environment in the country. Foreign companies in Thailand ask Prime Minister to update its laws pertaining to foreign workers. Official Thai delegation to China hopes to attract more investment, reinforce the relationship, and increase cooperation on China’s One Belt, One Road initiative. Malaysian Prime Minister Najib Razak rejected the notion he was trading the country’s sovereignty for foreign investment. Vietnam’s FDI inflows reach record highs and Vietnam promises steps to attract more investment.

MNCs in the News-2016-11-24

China’s Ministry of Commerce notes that it will continue to welcome and support foreign direct investment (FDI) from the European Union (EU). Very senior Chinese Communist Party official meets with Microsoft CEO and calls for the company to share its technology with China. China’s State Administration for Industry and Commerce imposes almost a $100 million fine on Sweden’s Tetra Pak for abuse of its market position. Qualcomm’s joint venture with the Guizhou provincial government will start to produce China-customized server chips in 2018. I order to enter China, Facebook reportedly is working on a tool that would empower the Chinese government to censor content. The Committee on Foreign Investment in the United States (CFIUS) said it would recommend a Chinese investment consortium not be allowed to purchase Germany’s Aixtron. The U.S.-China Economic and Security Review Commission said Washington should take action to ban China’s state-owned firms from acquiring U.S. companies. Japan’s Itochu Corporation and Electric Power Development Co. Ltd. will provide full support for the construction of a coal-fired Batang power plant in Central Java. Japan and Argentina work to boost Japanese investment in Argentina. New China Ministry of Industry and Information battery production standard will severely limit Korean battery sales in China. China takes adverse actions against Korean financial companies to, it is believed, punish Korea for its acceptance of the THAAD system. Despite uncertainties flowing from the US presidential election result, the Indonesian Investment Coordinating Board still has faith in its investment realization targets. The Indonesia-Japanese investment relationship remains robust. Following on the heels of his efforts to court Chinese investors, Malaysia Prime Minister Najib Razak is lobbying Japanese investors to put money in higher-value added activities in his country. Vietnam welcomes foreign investors to participate in the restructuring of the country’s banking sector. Vietnam pushes for investment in the food processing sector.

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