CEO risk, labor market need addressing to boost Korea's competitiveness, says Amcham

An American Chamber of Commerce in Korea seminar held Tuesday discussed the need for regulatory reform to enhance Korea's competitiveness as a regional business hub in the Asia-Pacific region.

Attendees of Amcham's "Doing Business in Korea Seminar" event held Tuesday at the Grand Hyatt Seoul in central Seoul, including Amcham Chairman James Kim, sixth from left in the front row, Trade Minister Cheong In-kyo, fifth from left in the front row, and Philip Goldberg, U.S. ambassador to Korea, fourth from right in the front row, pose for a photo. [AMCHAM]

CEO risk and an inflexible labor market are among the areas that need reform in Korea for the country to become an Asia-Pacific regional hub for global businesses, according to an American Chamber of Commerce in Korea (Amcham) seminar held Tuesday.

Korea is at a critical juncture because geopolitical tensions may become an opportunity for it to house global businesses' regional headquarters, but in order to do so, regulatory reform is crucial, the organization noted.

"Korea has probably one of the highest rates of convicted CEOs in the world," said Jeffrey Jones, chair of the Amcham Board of Governors, at the seminar.

"There are just too many laws and too many regulations that impose criminal liability on business leaders, and this is an issue for which we must find a solution."

The unpredictable tax environment and regulations on the digital economy were also highlighted.

Amcham hosted its sixth edition of its Doing Business in Korea Seminar on Tuesday at the Grand Hyatt Seoul. It invited various stakeholders, including government officials and businesspeople, to discuss strategies that would enhance Korea's competitiveness as a regional business hub in the Asia-Pacific region.

"Given Korea's strengths in economic fundamentals and expertise in critical and emerging technologies, we believe that Korea stands at a significant juncture to establish itself as a regional headquarters. Korea should not take a second seat to any country here in Asia," James Kim, chairman and CEO of Amcham said in his opening remarks.

The chamber said Korea ranked second to Singapore as a desirable country for businesses to set up their Asian headquarters, according to its survey on 800 member companies. Rising tensions with China, which have led companies to exit the mainland and Hong Kong, could act as an opportunity for Korea, it added.

"Korea achieved record-high foreign direct investment last year and another record in the first quarter," said Trade Minister Cheong In-kyo at the event. "We have set $35 billion as our target this year, which is a pretty challenging goal. The Korean government remains committed to implementing various policy measures to create a stable investment environment, making Korea an attractive investment destination and a leading hub of innovation in Asia."

The chamber earlier this year sent a letter to President Yoon Suk Yeol to address such issues aimed at raising the competitiveness of Korea.

Philip Goldberg, U.S. ambassador to Korea, also shared his positive stance on Korea's ambitions.

"Korea is at a moment of opportunity to position itself to attract more international businesses," the ambassador said.

"Managing an economy as sophisticated as Korea's is not easy, and there is always room for improvement."

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]