digital economy

MNCs in the News-2022-January

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

Dr. Hwy-Chang Moon's picture

Drivers of Korean Startups’ FDI: Government Support or Regulations?

The Korean government has been well-known for the significant support it gives to startups pursuant to its “Creative Economy” policy, which aims to stimulate economic growth through innovation and job creation. Ironically, given this strong backing, there have been an increasing number of Korean startups investing abroad to bypass the strict regulations of their home country. Although Korean startups have advanced technology, they are hamstrung by burdensome government regulations.