By Jeffrey D. Jones
With a new administration in Korea, we have an exciting opportunity to witness how new leaders and new policies can change the way the country is operated and the direction it is moving. Irrespective of your political inclinations, changes of this magnitude are always exciting and full of new opportunities and challenges for all citizens and residents.
The issues facing the new Yoon administration are daunting. He has to find the right balance to cease the spiraling real estate prices so young families and individuals can afford to buy their first home, he must find the right social and economic policies to encourage young couples to yearn for children to overcome the crisis of Korea's dwindling population, he must maneuver his diplomatic policies in an increasingly dangerous world to ensure peace and prosperity on the Korean Peninsula and establish the correct policies to ensure full and productive employment by Korea's smart and ambitious youth. Not easy tasks to be sure.
In implementing the changes needed, one of the objectives of the new administration should be to study very carefully the changing environment in Hong Kong. There is much to be learned from the drastic and often unfortunate changes taking place in Hong Kong making it quite an unpopular destination for businesses. Hong Kong, which once was a thriving financial and business hub in Asia, has lost its luster and more and more companies are choosing to leave Hong Kong. Many multinationals are also finding it difficult to get their senior leaders to accept positions to live in Hong Kong. The recent departure of the New York Times from Hong Kong making Seoul its Asian headquarters is a very good example of the decline of Hong Kong as a business and financial center.
Singapore can also offer a good comparison as well. Singapore has done well has a financial and business center and the Singapore government has worked hard to establish the policies and regulatory system to attract multinational businesses. But Singapore too has challenges, one of which is a shortage of employees often making it difficult for companies for fully operate in Singapore.
Looking at these two regions can provide a clear roadmap for the new Yoon administration to establish policies and make the regulatory changes to really make Korea a true center for business in the Asia-Pacific region. This is not just a dream, but is definitely achievable. Multinationals are now in the active mode of looking for alternatives to Hong Kong or Singapore and where they will locate their Asia-Pacific headquarters. Making Korea the choice is now a real possibility and the benefits of doing so are many.
One of the obvious benefits is the creation of new high-paying jobs. These jobs will provide the benefit of introducing Korean employees to business strategies throughout the region. This type of training and educational opportunities are priceless and ultimately will benefit all business operating in Korea. It is rare in today's environment for employees to remain lifetime employees with a single company. One of the less obvious benefits will be the introduction of small and medium-sized businesses to these multinational business leaders located in Korea. Korea's large companies are already well-known, but Korea's SMEs less so. Having scores of multinationals in Korea will change this dramatically providing tremendous opportunities to Korea's SMEs for increased sales opportunities both domestic and export.
One of the less obvious, but equally valuable benefits will be the presence of senior business leaders in Korea from many different countries. These individuals are influential in their companies and countries. As they spend time in Korea, they will become familiar and in fact supportive of Korea. This will provide clear economic and diplomatic advantages to Korea.
There are not many changes needed to make Korea attractive as a business center in Korea. A quick comparison of the regulatory environment in Hong Kong and Singapore will provide the answers of what Korea needs to do. The changes are not many, but those which are required are fundamental and will require commitment and courage to implement. If the new administration can muster the courage and commitment to get this done, Korea can become a vibrant business center in the Asia-Pacific region and the benefits to Korea's economy and all of its citizens will be tremendous.
Jeffrey Jones is chairman of a nonprofit foundation, Partners for the Future. He served five terms as chairman of the American Chamber of Commerce in Korea.
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The issues facing the new Yoon administration are daunting. He has to find the right balance to cease the spiraling real estate prices so young families and individuals can afford to buy their first home, he must find the right social and economic policies to encourage young couples to yearn for children to overcome the crisis of Korea's dwindling population, he must maneuver his diplomatic policies in an increasingly dangerous world to ensure peace and prosperity on the Korean Peninsula and establish the correct policies to ensure full and productive employment by Korea's smart and ambitious youth. Not easy tasks to be sure.
In implementing the changes needed, one of the objectives of the new administration should be to study very carefully the changing environment in Hong Kong. There is much to be learned from the drastic and often unfortunate changes taking place in Hong Kong making it quite an unpopular destination for businesses. Hong Kong, which once was a thriving financial and business hub in Asia, has lost its luster and more and more companies are choosing to leave Hong Kong. Many multinationals are also finding it difficult to get their senior leaders to accept positions to live in Hong Kong. The recent departure of the New York Times from Hong Kong making Seoul its Asian headquarters is a very good example of the decline of Hong Kong as a business and financial center.
Singapore can also offer a good comparison as well. Singapore has done well has a financial and business center and the Singapore government has worked hard to establish the policies and regulatory system to attract multinational businesses. But Singapore too has challenges, one of which is a shortage of employees often making it difficult for companies for fully operate in Singapore.
Looking at these two regions can provide a clear roadmap for the new Yoon administration to establish policies and make the regulatory changes to really make Korea a true center for business in the Asia-Pacific region. This is not just a dream, but is definitely achievable. Multinationals are now in the active mode of looking for alternatives to Hong Kong or Singapore and where they will locate their Asia-Pacific headquarters. Making Korea the choice is now a real possibility and the benefits of doing so are many.
One of the obvious benefits is the creation of new high-paying jobs. These jobs will provide the benefit of introducing Korean employees to business strategies throughout the region. This type of training and educational opportunities are priceless and ultimately will benefit all business operating in Korea. It is rare in today's environment for employees to remain lifetime employees with a single company. One of the less obvious benefits will be the introduction of small and medium-sized businesses to these multinational business leaders located in Korea. Korea's large companies are already well-known, but Korea's SMEs less so. Having scores of multinationals in Korea will change this dramatically providing tremendous opportunities to Korea's SMEs for increased sales opportunities both domestic and export.
One of the less obvious, but equally valuable benefits will be the presence of senior business leaders in Korea from many different countries. These individuals are influential in their companies and countries. As they spend time in Korea, they will become familiar and in fact supportive of Korea. This will provide clear economic and diplomatic advantages to Korea.
There are not many changes needed to make Korea attractive as a business center in Korea. A quick comparison of the regulatory environment in Hong Kong and Singapore will provide the answers of what Korea needs to do. The changes are not many, but those which are required are fundamental and will require commitment and courage to implement. If the new administration can muster the courage and commitment to get this done, Korea can become a vibrant business center in the Asia-Pacific region and the benefits to Korea's economy and all of its citizens will be tremendous.
Jeffrey Jones is chairman of a nonprofit foundation, Partners for the Future. He served five terms as chairman of the American Chamber of Commerce in Korea.
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