Sunday, December 4, 2011

Korea attracts Indian investors

As Indian companies have begun rapidly globalizing, the Korean government is wooing the companies to invest to Korea in earnest.
The Ministry of Knowledge Economy and KOTRA’s regional office in Mumbai hosted the first Korea-India Trading Forum on November 24 at the Taj Mahal Palace Hotel in Mumbai, India to attract investments from Indian companies.

Some important figures in attendance at the forum included Lee Byeong-cheol, Director General for Cross-Border Investment at the Ministry of Knowledge Economy, and Anand Mahindra, Vice President of Mahindra Group, along with 200 Indian business officials.
Anand Mahindra and Lee Byeong-cheol (Photo: Yonhap News)

The forum started off with a welcoming message and the appointment of Anand Mahindra as ambassador of investment to Korea. It was followed by a presentation about the investment environment of Korea, an introduction of various Korean companies for investing in, and one-on-one investment counseling services.

Director Lee said that the Korean government decided to attract Indian investors to Korea as they have been rapidly globalizing through mergers and acquisitions (M&A) of overseas firms.
According to the United Nations Conference on Trade and Development (UNCTAD), India invested USD 1.4 billion overseas in 2001, and last year the amount of investment expanded to USD 14.6 billion.
 “As Indian companies, Tata Group first invested in Korea, yet Mahindra Group has invested the largest amount in Korea,” said Vice Chairman Mahindra after receiving his ambassadorship. “We’ll try our best for Indian companies to invest in Korea much more.”
Tata Motors, the largest vehicle manufacturing company in India, bought Daewoo Motors in 2004, while Mahindra Group bought Ssangyong Motors in October last year. The rapid growth of Indian companies and their interest in investing overseas have also been proven by the the purchase by Indian company Tata Steel of British company Corus Steel in 2006. Bharti Airtel Group also bought Zain Group from Kuwait last year.
During the forum, KOTRA and Indian bank ICICI signed an MOU for business cooperating, while Korea Engineering & Consulting Association signed an MOU with the Indian Engineering Export Promotion Council for expanding investments and cooperation by combining the technologies of Korea and human resources of India.

By Jessica Seoyoung Choi

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