Actus des entreprises

FKCCI discusses with MOTIE the ways to improve Working Visa and Cash Grant Accessibility

On December 18th, the French-Korean Chamber of Commerce and Industry (FKCCI) took part in a Roundtable Meeting held by the Ministry of Trade, Industry and Energy (MOTIE) and chaired by MOTIE's International Trade & Investment Deputy Minister Kim Wan-ki, in the presence of Dr. Kim Sung Jin, Foreign Investment Ombudsman, representatives of the Chambers of Commerce of 7 countries and representatives of foreign-invested companies in Korea.

The main goal of the meeting was to enhance communication between Korean authorities and foreign business communities, with the aim of fostering collaboration in the areas of economy and investment. The event served as a platform to engage in detailed discussions about elucidating changes to the foreign investment system in 2023, refining regulations through the presentation of accomplishments and case studies, and gathering suggestions from companies with foreign investments.

The FKCCI, represented by Mr. David-Pierre JALICON, CEO of D.P.J. & Partners Architecture and Chairman of the FKCCI, and the French company Air Liquide, represented by Mr. Nicolas FOIRIEN, President & Representative Director at Air Liquide Korea, advocate for the interests of the French business community in Korea, especially regarding working visas for young foreign workers and cash grant accessibility for foreign companies, and the energy transition in Korea.

Foreign Direct Investment (FDI) Policy

Mr. Kim Wan-ki emphasized that South Korea continues to draw increasing foreign investment due to its advantageous conditions, including a robust manufacturing foundation, a highly skilled workforce, cutting-edge technology (ranking 5th in the global innovation index), an extensive trade network featuring FTAs with 59 countries, a high national credit rating, and diligent policy efforts.

Consequently, foreign direct investments (FDIs) have reached a historic high in 2023, attracting $24 billion, i.e. a remarkable daily influx of $100 million. Key sectors, particularly high-tech and greenfield industries, experienced substantial growth, with a 30% year-on-year increase totaling $7 billion in investments for the former and a 20% year-on-year rise, amounting to $17 billion, for the latter.

In 2024, the MOTIE ensured that it will improve cash grants eligibility system and processes, reduce uncertainty and enhance continuity for investment, create new R&D programs for foreign-invested companies, improve FDI reporting system to enhance convenience for foreign-invested enterprises and stronger support for foreign-invested companies.

Find More Information on Korea's FDI Policy

Regulatory Reform for Foreign-Invested Companies

Working Visa

The FKCCI highlighted challenges and concerns encountered by French companies in Korea to find talents on a increasingly tense labor market, while visa policies limit the possibility to hire foreign talents. In particular, hiring foreign young graduates for full-time jobs can be difficult because of diverse visa limitations. Some visas restrict full-time work (student or working holiday visas) or require years of experience to be granted, which is very restrictive for young graduates looking for junior positions. However, offering opportunities in foreign companies can attract new talents. These individuals bring skills and qualifications, benefiting the Korean economy with their diverse expertise.

 

Cash Grant

The FKCCI also addressed the complexities associated with securing cash grants from local and national authorities in Korea. The FKCCI proposes to consolidate information and streamline the application procedures for cash grants, creating a single desk to better support and facilitate companies in obtaining cash grants. Air Liquide Korea also voiced concern about the restricted access to cash grants for industries like energy transition and expressed his hope for future changes in this regard.

 

The FKCCI will remain active in advocating market access issues for its members and French companies by regularly meeting with Korean officials. Should you have any inquiry, please contact welcome(@)fkcci.com