India invites S. Korea to set up SEZs, invest in insurance, cooperative banking, healthcare
NEW DELHI: Former union minister and India’s Sherpa to G 20, G7 Suresh Prabhu has said South Korean companies should explore the possibilities of making an investment in the service sector in India, and also set up dedicated Special Economic Zones (SEZs) here for exporting to the world.
All sizes of Korean companies, whether small, medium, or large should have a specific geographical area identified as SEZs, where everything can be Korean with a flavour of Korea inside India, said Prabhu.
“This will provide an ecosystem to all major Korean companies and their associates who can be at the same SEZ. It can also be a launching pad for all Korean companies globally,” said the former Railways, Commerce & Industry, and Aviation minister, now a Member of Parliament.
Suresh Prabhu was interacting online with the Indian representatives of Korean trade and industry associations Korea Trade-Investment Promotion Agency (KOTRA) and Korean Chamber of Commerce and Industry (KOCHAM) during the 4th session of “India & The World Series” webinar organized by CII on July 15.
The “India & the World Series” has already interacted with Latin America, Africa, Middle East, and it has plans to hold similar online interaction with EU, Japan, USA, ASEAN, and Central Asia.
“As India is on the threshold of launching its programs like Make in India and Atma Nirbhar Bharat mission, as India gets ready to engage with the world, Korean can become its partner to that as it will benefit both,” said the former minister.
He said that apart from manufacturing in India for exports, Korea must look for investing in the service sector like insurance and cooperative banking.
“Some of the Korean companies are very strong in the service sector such as insurance and financial services. These companies should look at India as their next destination. There is tremendous potential especially at a time when the world is feeling insecure. Human nature is that when they feel insecure, they get the insurance cover for them.”
Prabhu said, “Also there is potential in Korean cooperatives. I met the Korean sovereign wealth fund, Pension fund and they have hundreds of billions of dollar investment but they are not getting the returns. We can work out a proper structure wherein the safety of the funds will be paramount. The long term investment can yield better results and returns for your investment, the pensions, taxpayers, and citizens will benefit.” He said some of the Koran cooperative banks have already made investments in India.
The third-largest in the world with USD 600 billion in assets, South Korea’s National Pension Service (NPS) is a public pension fund in South Korea. It is also the largest investor in South Korea. Likewise, Korea Investment Corporation (KIC) is a sovereign wealth fund established by the government of South Korea and has about USD 150 billion in assets.
Prabhu also suggested setting up third party export facilities for exporting to third countries on the lines of what India has done with Japan with India-Japan collaboration. Healthcare, railways, and shipbuilding were other areas in which he said India and Korea could collaborate.
The former minister assured that the concerns shared by the Korean representatives would also be addressed.
Hee-Chul Jung, Secretary-General, KOCHAM, and Young Kim Moon, President, KOTRA, South-West Asia endorsed the idea of setting up manufacturing facilities in India for exporting to third countries.
“On behalf of the Korean companies operating in India, KOCHAM would like to report that 750 strong members are all accounted for and business is as usual,” said Hee-Chul Jung.
While terming Korea and India as “Brothers in arms again”, he quoted a news article titled “[EXCLSUIVE] Lt Col A G Rangaraj figures in Korean calendar on War Heroes” appeared in Asian Community News.
“According to a recent article in Asian Community News of India, Lieutenant Colonel Arcot Govindarj Rangaraj of the Indian Army Medical Corps was named the War Hero of the Month of July by the Korean government. In March 1951 he parachuted deep into enemy territory to save wounded allied forces. He was decorated with the ‘Maha Vir Chakra’ honor in 1951. I would like to sincerely thank Colonel Rangaraj and India for its sacrifice and contribution during the Korean war 70 years ago. We are once again in a battle together. Now an enemy called a pandemic,” Hee-Chul Jung, Secretary-General, KOCHAM added.
While paying condolences to victims of LG Polymer’s plant mishap reported in Visakhapatnam in May this year, he said, “KOCHAM express sincere condolences to the local community and families who lost their loved ones and received the permanent injury in the tragic accident in Visakhapatnam last May. On that tragic day, KOCHAM swiftly sent out a bulletin asking members to take maximum safety measures, before resuming any business operation.”
In his address Young Kim Moon, President, KOTRA, South-West Asia, said, “COVID-19 a great opportunity to India. Many MNCs from the EU and South Korea are planning to diversify their location to other countries. From our point of view, India will be one of the first priorities in this relocation process.”
