The world of Korea is coming to India: Yoo Chang-ho

New Delhi. South Koreans are looking forward to India as their future business and industrial ally, and have definite plans to shift their production facilities from out of China and bring them here.

Off late, Korea has realized that making huge investments by the Korean companies in China in the early 1990s was a mistake. Majority of Korean companies are not doing so well in China and, therefore, are pulling out of its ‘controlled economy’.

Korea seems to have realized that Japan’s decision to move early into India in the 1980s when Suzuki had set up its first car manufacturing plant near New Delhi was comparatively a wise move while Korea around that time was caught up with China. Korea had committed a mistake by putting all eggs in one basket, it feels.

While admitting that Japan very rightly entered the Indian market in the 1980s, Yoo Chang-ho, the Minister Counselor for Political Affairs, Embassy of Republic of Korea told Asian Community News (ACN) Network recently, “Korea was late as it was caught up with China at that time. That may have been a mistake as we put all eggs in one basket. Korea and China became diplomatic partners in 1991 as we thought China was a rising power and all Korean companies started going to China. It was also because China was physically very close, has cheap labour and curtailed red-tape.”

Korea is very well in sink with the Indian call “Make in India” and has coined “Make for India” initiative to support it as both the countries move close to each other with each passing day. It’s evident from the quick cross visits made by the state heads Modi and Moon in each other’s countries.

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India has started to open its doors for Korean companies also because realising the fact that China has become a difficult terrain for Korean companies to operate there for various reasons.

“Korean companies are coming out of China, they started doing business in China when the government was very friendly. But now it is impossible to do business there and they want to come to India. Korea will help India in making ‘Make in India’ initiative a success. Korea has many success stories like Hyundai, Samsung, LG and others,” Chang-ho said.

When asked about the ease of doing business in India and China, the Korean minister said it worked both ways in China where decisions were comparatively very quick.

“However, in China, it works both ways. Yes means yes and no means no, nothing can change their decisions, there is no way to change their minds. But ideal market economies do not work in China, and Koreans companies are beginning to feel that. On the contrary, China actually is on its way down. India has more potential and once India picks up, it will do better,” he added.

When asked about the reason why Korean companies are not doing so well in China and are pulling out of there, Chang-ho said because Chinese did not like the way Koreans were importing weapons.

“We are facing North Korea and it is our prerogative to arm and protect ourselves but China said you are doing this to target us and they didn’t believe that it was North Korea, not China we are targeting. China started telling people not to buy Korean products. China is a very controlled and top-down economy, there is no investment stability there, we have burned ourselves in China. We are moving out even though that issue of buying weapons has ended but sentiments are still there,” Chang-ho said.

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