Chungcheongnam-do

▲ Chungnam and the Linde group singed an M.O.U. to Invest $20 millions (October 21, 2008)

Chungnam is writing a new history in Korea’s foreign investment. For the last three years, it has strategically moved to attract much foreign investment under the goal of 5 billion dollars and ended up reaching 5.132 billion dollars. It attracted investments from 2,764 domestic and foreign companies for three years (September, 2006~September, 2009). Thus it was honored as Korea’s No. 1 local government in foreign investments in 2008.

ASM, One of the World’s Top 10 Semicon- ductor Manufacturers, Doing Business in Korea
A closer look at Chungnam’s performance in attracting foreign investment by sector will present a surprise. In September, 2006, it succeeded in persuading Dutch ASM, one of the world’s ten leading semiconductor manufacturers, and raised 20 million dollars of investment.
At that time, ASM was searching for a place to set up its factory through which to manage its research centers, equipment design, development and mass production system altogether. It was considering the idea of building its base to explore the Asian market in Japan, but the former provincial governor Mr. Lee Wan-gu personally visited the company’s headquarters in Amsterdam and persuaded the management. As a result, they made an abrupt detour to Chungnam. The former provincial governor revised the concerned ordinances to assist the company with the rent for ten years and promised it all sorts of incentives to finally seal the deal.

The Single Biggest Foreign Investment of 1.2 Billion Dollars
Chungnam also successfully attracted 1.2 billion dollars, which was the biggest amount for a single investment in the nation in June, 2009. Defeating Ulsan, Yeosu, and Yeocheon in the competition, it attracted Cosmo Oil after three years of negotiations.
Japan’s No. 2 oil refinery, Cosmo Oil, runs the refinery facilities capable of 640,000 barrels per day. It is a global corporation with annual sales of 35.2 billion dollars and staff of 1,957 (as of 2008). Its investment attracted attention for being the biggest amount for a single investment in the nation.

Further Investments From S-LCD in Asan Tangjeong
The joint venture between Samsung Electronics and Sony, S-LCD decided to make further investments of 950 million dollars in Asan Tangjeong in July, 2007. The decision came after Chungnam’s hard work.
At that time, the 8th generation line under construction for LCD TV panels needed to be appointed as an area of foreign investments to receive customs reductions for the production facilities. But new appointments usually required screening and reviewing over six months, which meant that further investments of S-LCD would be canceled. Chungnam persuaded the central government to expand the area of the 7th generation line and eventually attracted the investments.

Why Does Chungnam Attract So Many Foreign Investments?

“50 million dollars from Belgium, 20 from American MTG, and 20 from Magna Power Train of Austria.”
Former provincial governor Mr. Lee came back from his economic diplomatic trip to the U.S.A., Belgium, and Austria in October, 2009. Chungnam attracted a total of 90 million dollars in a month after it reached 5 billion dollars in August, 2009.

▲ Investment M.O.U. worth 179 million dollars with Rohm & Haas at its headquarters in the U. S. A. (September 28, 2007)

Chungnam’s Speedy Performance in Attracting Foreign Investment
According to statistics, Chungnam recorded 5.132 billion dollars (31 investments) in foreign investment (based on MOUs) in the manufacturing industry from July, 2006 to October, 2009. Its efforts to attract foreign investments have expanded globally to include the U. S., the birth place of the recent global financial crisis, Europe, Asia including Japan and Taiwan, and even Russia. Especially 99% of the foreign investments are concentrated in the manufacturing industry where investment generates great effects.
An official working on Chungnam’s attraction of foreign investments said that “Chungnam has been attracting foreign investment in the manufacturing industry around IT, automobile, and petrochemistry for the great value it adds.”

Persuades Companies with Changes and Speed Management
The critics say that former provincial governor Mr. Lee’s aggressive and thorough strategies worked their charms in Chungnam’s impressive performance in attracting foreign investments. He made trips to 24 companies in 18 countries for three years to persuade them to build plants in Chungnam, covering 250,200 km, which equals six trips around the earth.
He worked in the field himself because he knew that the top decision-maker’s speedy judgment, determination, and reliability are essential in negotiations. Always saying, “I will go wherever I need to in the world to help with the province’s economy,” he entered negotiations with many CEOs.
In October, 2008, he made trips to Europe and the U. S., the birth place of the recent global financial crisis, in order to attract their investments and successfully attracted a total of 100 million dollars from global corporations like Rohm & Haas.

The Strategy of Providing Investors with Support Services Worked

▲ Chungnam succeeds in attracting 1.2 billion-dollar project, the largest in the Korea 2009 year so far.(June 9, 2009)

Chungnam not only relaxed the regulations for foreign companies’ easy entrance into the market, but offered them complete and speedy administrative service from contract to the construction and operation of plants. In May, 2008, it negotiated over lot sales with Daewoo Shipbuilding and Marine Engineering to help the Russian DI Group with its efforts to secure a site. It also altered the use of the gas supply facility site for Belgian Umicore.
The old organization of public servants was replaced with a team of corporate nature in Chungnam in order to effectively attract foreign investment. Chungnam also introduced the “Open Tickets System,” which provides flight tickets for any occasions and eliminates screening procedures for overseas business trips, in order to pursue flexibility in administration. Mr. Lee said, “Our secret to remarkable foreign investment is the combination of the team devoted to attracting foreign investments in the new framework and the sales mindset of the public servants armed with the motto, ‘Not even a dollar will be missed.’”

Chungnam’s Differentiated Infrastructure for Attracting Foreign Investment
Chungnam’s geographic advantages have worked in favor when trying to attract foreign investments. It has seven highway lines, eight railway lines, and five trade ports. Located at the center of the nation, it boasts a complete traffic and logistics infrastructure and is accessible within a couple of hours from anywhere in the nation.
While land prices are high in Seoul and its metropolitan area with 5~8 million won per pyeong(3.3㎡), Chungnam offers its land at lower prices with 400,000~800,000 won per pyeong(3.3㎡). That will be one attractive advantage that companies cannot pass up. In addition, it’s easy to recruit talents with expertise due to being adjacent to the Seoul metropolitan area.
It has global corporations such as Hyundai Steel, Hyundai Motors, and Samsung Electronics in its province. They chose Chungnam for their operations because it’s convenient to move to the Seoul metropolitan area and other regions from Chungnam and they can use the ports on the west coast that play as the bridgehead for Korea’s trade with China.

Foreigners Increase Land Ownership Every Year
Foreigners have increased land ownership every year in Chungnam. As of June, 2009, they own 18.83㎢ (1.4323 trillion won) with Americans owning 10,249,000 ㎡, Asians including Japanese and Chinese 3,789,000 ㎡, and Europeans including the British, French, and German 1,110,000 ㎡. The area of their ownership has increased annually to 16,170,000 ㎡ in 2007, 17,870,000 ㎡ in 2008, and 18,830,000 ㎡ in 2009. The reason behind such a constant increase is that foreign companies have bought sites and built plants thanks to Chungnam’s active efforts to attract foreign investments.

▲ It made an investment agreement worth 20 million dollars in electronic materials with MTG.(USA, September 23, 2009)

Chungnam Continues to Attract More Foreign Investments
Chungnam has attracted foreign investment in the devices industry including automobile, display, steel, and petrochemistry and attained satisfactory results. In future, it plans to expand into the areas of technology, tourism, and energy as well.
It’s currently reinforcing the roles of its office in Shanghai in order to attract Chinese investment since China is the world’s largest storehouse of foreign exchange. In addition, it will attract foreign investment in crude oil, iron ore, and new generative energy like solar power and secondary batteries. 


Former Provincial Governor Mr. Lee was a True Salesman for Foreign Investment

Former provincial governor Mr. Lee once said, “My biggest achievement, I believe, is the establishment of a system for attracting foreign investment in the province.”
He attracted more than 5.1 billion dollars of foreign investments within three years in his office and reached his goal (5 billion dollars) for his four-year term earlier. He takes pride in establishing a system for attracting foreign investments in the province.
He was busier than a corporate CEO for three years in his office, working around the globe. He actually thought of himself as a CEO rather than provincial governor at the negotiation table, he added.
His fighting spirit played a big role in his achievements. Once a foreign company showed its intention for investment in the province, he checked its sincerity of intention in various routes and brought it to the negotiation table in any ways. While doing his best to attract foreign investments in the province, he never hesitated to refuse one when it violated his principles. “They developed trust in me since I offered what I could and couldn’t deliver clearly and went on to make investments,” he said. “I’m planning to expand the areas from manufacturing to tourism and service and move to the regions with rich foreign exchange reserves like the U. S., Europe, China and Middle East.”

Chungnam Set Out to Reinforce Resources Diplomacy,

Attract 1.5 Billion Dollars and Export 42 Billion Dollars in 2010

Chungnam set a goal of attracting 1.5 billion dollars in foreign investment and make 42 billion dollars for 2010, and determined to engage in active activities to attract foreign investment and support exports.

Its specific action plans include the following: maintaining and strengthening its exchange and cooperation with Russia and Europe, expanding exchange with the Middle East to attract oil money, South America for its resources, and China given its speed with opening and industrialization, and a focus on developed nations such as the U. S. and the United Kingdom to attract foreign investments in oil capital, tourism and service, film, and green industry.

▲ Former Governor Lee Wan-gu announced planning to attract foreign investment and support exports of Chungnam for 2010.(November, 2009)

It set a goal of exporting 42 billion dollars for 2010 considering the rising trend in exports of semiconductors and LCDs. For that goal, it will dispatch 12 trade missions around the world, participate in more than 20 world-famous trade shows, and implement other support policies for exports. An official from the provincial office displayed confidence, saying that “Korea will record around 4% economic growth in 2010. But Chungnam will increase its exports and foreign investment attraction by more than 20% and thus lead the nation’s economic growth like it did in 2009.”