South Korean President Yoon Suk Yeol is facing pressure from the American Chamber of Commerce in Korea (AMCHAM) to ease certain regulations unique to Korea in order to attract multinational companies to relocate their Asia-Pacific headquarters to Seoul [9200bdc9]. AMCHAM specifically highlighted concerns regarding the Serious Accidents Punishment Act (SAPA), which imposes severe penalties on CEOs for fatal industrial accidents. The organization also emphasized the need for Korea to reform its rigid labor laws, cloud service restrictions, and unpredictable tax systems [9200bdc9].
AMCHAM has requested the South Korean government to develop a structured program with targeted incentives to attract foreign investments and make Korea a more attractive destination for global enterprises. The chamber also asked for streamlined processes for expatriates, including mobile phone setup, opening bank accounts, and obtaining credit cards [9200bdc9].
AMCHAM believes that Korea has the potential to become the premier business hub in the Asia-Pacific region and calls for collaboration between government entities, local stakeholders, and international businesses to solidify Korea's status as a preferred destination for multinational companies [9200bdc9].
James Kim, chairman and CEO of AMCHAM, is calling for regulatory reform in order to attract more global companies' Asia headquarters to Seoul. Kim highlights Korea's potential as a regional business hub, citing the country's robust infrastructure, skilled workforce, and seamless IT integration. He sent a report to President Yoon Suk Yeol titled 'Korea as an Asia-Pacific Regional Headquarters,' emphasizing the need for regulatory reform. Kim believes that Korea's high political and press freedom, along with tensions between the United States and China, could give Korea an advantage in attracting global companies. He mentions that companies like Qualcomm and Delta Air Lines have already moved their Asia-Pacific headquarters to Korea. Kim also discusses the appeal of Korea as a preferred regional headquarters destination, highlighting the country's resilient economy, skilled workforce, leadership in innovation, and global popularity of Korean culture. He acknowledges that Korea lags behind Singapore in terms of the number of regional headquarters but suggests that labor flexibility and a more favorable regulatory environment are needed to attract more companies. Kim also mentions the importance of administrative services and financial services in enhancing the expatriate experience. He calls for the Korean government to support initiatives to establish regional headquarters by creating a more favorable regulatory environment aligned with global standards. Kim praises the positive relationship between Korea and the United States, highlighting the historic levels of trade and investment between the two countries. He mentions the role of AMCHAM in fostering the business environment and facilitating greater Korean investments in the U.S. [b3e73179].