Business News for December: Foreign Direct Investment
Updated: Sep 5
ASML's expansion in S. Korea reflects its 'preparation for growth': CEO
The CEO of the Dutch chip equipment maker ASML Holding NV said on Nov. 15 that building a new chip cluster in S. Korea reflects the company's preparation for sustained growth in what he said is an industry that will only continue to expand. Building a Korean supply base "is a significant opportunity" for the company to grow further, ASML President and CEO Peter Wennink said during a press briefing in Seoul.
Wennink visited the country to attend a groundbreaking ceremony on Nov. 16, for a new USD 181 million chip cluster in Hwaseong, some 40 kilometers south of Seoul. When completed by the end of 2024, the 16,000-square-meter cluster will include a local repair center, training center, R&D center for parts, and education and experience center. It also operates a global distribution center in Incheon, 27 km west of Seoul.
S. Korea seeks to change dividend-linked rules to attract more foreign investment to stock market
S. Korea will push to change regulations in a way that would allow investors to know how much they would receive in dividends before buying stocks in a bid to attract more foreign investment in the local equity market, a senior official of the country's top financial regulator said on Nov. 28. Under the current rules, listed companies determine who will receive dividends in late December first before setting the amount in March and then pay out dividends to investors in April the following year. Market experts say such a rule change would attract more foreign investors seeking stable income through dividend payments.
Tesla’s Musk names Korea among top candidate sites for Gigafactory
Tesla Inc. Chief Executive Elon Musk said on Nov. 23 that S. Korea is among its top candidates to build in Asia another Gigafactory, the US electric car maker’s vehicle, battery and component factory. Musk, also the chief executive of SpaceX, the rocket and spacecraft manufacturer he founded, made the remark during a video call with Korean President Yoon Suk-yeol, Korea’s presidential office said in a statement.
Yoon, aware of Tesla’s plan to build a Gigafactory in Asia, asked Musk to build it in Korea and the US billionaire responded that he is considering the country as one of the top candidate locations and would make the final decision after reviewing investment conditions in other Asian countries, including labor quality, technology level and production infrastructure, according to the statement.
Saudi gifts Korea with $30 bn deals, invites more in energy, infrastructure
Saudi Arabia’s Crown Prince Mohammed bin Salman gifted S. Korea with 26 business deals worth USD 30 billion and invited Korean enterprises to the ambitious Saudi 2030 initiative to turn the oil-rich kingdom into sustainable energy and economic structure during his business-packed one-day stay in Seoul. During the Crown Prince’s visit, Korea and Saudi Arabia signed 26 memoranda of understanding (MoU) in celebration to the 60th anniversary of diplomatic ties. The two governments opened a Korea-Saudi Investment Forum in central Seoul where investment agreements worth USD 30 billion were signed.
*This article is extracted from Invest KOREA information center, 2022.