startups

MNCS in the News-2020-01-31

The coronavirus is affecting the operations of numerous multinational corporations (MNCs) in China, though many remain hopeful about the longer-term and are not overreacting. The former Chairman of China’s Sinopec opined that Chinese foreign direct investment (FDI) in sensitive areas and big deals would be avoided due to the contemporary political environment. Chinese firms win railway tenders in Namibia, where they already have a noteworthy presence. Japanese Diet bill proposes requiring major technology firms, foreign and domestic, to report annually to Japanese authorities on practices like data collection and also to establish complaint procedures. Due to the coronavirus, Toyota Motors suspends operations in China pending further review. South Korea seeks to create a better environment for domestic and foreign startups to promote growth. South Korean FDI in the US hits USD $10 billion for the fourth consecutive as relatively higher growth rates and lower taxes prove attractive.

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.