Covid-19 pandemic projects India as next investment destination for Korean Cos: Ambassador Shin Bong-kil

But India needs to boost its infrastructure, and create a conducive business environment for the investors and improve living conditions for the Koreans to live comfortably with their families.

Sanjeev K Ahuja On Jul 4, 2021

Shin Bong-kil, Ambassador, Republic of Korea in India.

New Delhi/Chandigarh: The Covid-19 pandemic has not only projected India as the next investment destination for the global companies including Koreans, but it also has brought to the fore risk of overdependence on global supply chains being concentrated in one country, China.

Resultantly, many global companies, including Koreans are looking at India as an alternative manufacturing destination for diversifying supply chains to be better prepared to tackle future disruptions caused by any global crisis.

However, India needs to create a conducive business environment for the investors and improve living conditions for the Koreans to live comfortably with their families.

Shin Bongkil, the outgoing Ambassador of the Republic of Korea in India said this during an investment meeting organized by the Asian Community News (ACN) Network last week at the residence of Haryana Chief Minister Manohar Lal Khattar in Chandigarh.

“The Covid-19 pandemic has further added to India’s attraction as the next investment destination. The global pandemic has exposed the risk of overdependence on global supply chains being concentrated in one country. Consequently, there are increasing calls for diversifying supply chains to be better prepared to tackle future disruptions caused by any global crisis. Global companies, including Korean companies, are looking at India as an alternative manufacturing destination,” said the ambassador who returned to Korea on July 1.

Jang Jae-bok, currently the Ambassador for Public Diplomacy in Korea will succeed Shin Bongkil will assume his office in India soon.

India, sensing the opportunities, has rightly pitched itself as a viable alternative manufacturing base. Korea, as the world’s foremost manufacturing heavyweight, is more than eager to support India’s manufacturing ambitions, Shin Bongkil added.

The meeting that aimed at discussing ways and means of enhancing Korean investment opportunities in the Haryana state was attended by Haryana CM, Foreign Cooperation Department officials of Haryana government, Euy Don Park, President, Federation of Korean Associations in India, and VP, Korean Chamber of Commerce (KOCHAM) in India, and top management of a Korean company Seoul Semiconductor & Seoul Viosys Limited.

Post this meeting, Seoul Semiconductor announced that it would expand its operations in India and was planning to set up an R&D facility in Gurugram. Currently, It has a sales office in Gurugram.

However, the ambassador left a word of caution as well on India’s preparedness on inviting foreign investment and expressed concern about its existing infrastructure and business and living environment for the foreigners.

India and South Korea together have vowed to take bilateral trade to $50 billion by 2030.

“As the second wave of Covid-19 subsides in India with the tireless efforts of Indian government and timely support from partner countries, including Korea, it is important to upgrade the essential infrastructures, thus getting better prepared to tackle future disruptions caused by any crisis.”

At the same time, Shin Bongkil shared a word of caution, “But India, to attract more large Korean corporations and ‘Hidden Champions’, needs to take further steps to create a conducive business environment for foreign investors to do business in the country and also improve living conditions for them to live comfortably with their families.”

“I am aware, under the dynamic leadership of Prime Minister Narendra Modi, India has consistently improved its position in the Ease of Doing Business Index. Still, India needs to do much more on both ease of doing business and ease of living fronts,” he concluded.