CzechInvest to have its first Korean advisor

2 Nov. 2006 | CzechInvest | The Investment and Business Development Agency CzechInvest, concluded a partnership contract with the Korea Exchange Bank, one of the largest banks in the country. The Bank will bestow to CzechInvest a new advisor that will contribute to the growth of investments from South Korea.

This year the Czech Republic succeeded in gaining an important investment from Hyundai of Korea. The Korean firms SungWoo and Plakor, which are suppliers to the carmakers Hyundai and Kia, are building production plants in the Czech Republic. “We expect that Hyundai’s decision to invest in the Czech Republic will positively influence the development of Korean investments. In addition to the companies from the automobile industry that are coming here because of Hyundai, we want to obtain new projects with high added value, especially in the fields of electronics and precision engineering,” says Tomas Hruda, CEO of CzechInvest.

There are currently 17 Korean companies registered in the Czech Republic. Most of these are trade and sales firms, whereas three operate in the manufacturing field. In total, Korean companies have committed to invest over USD 2 billion in the Czech Republic and employ or plan to employ over nine thousand Czech workers. CzechInvest has further noted the interest of 17 Korean firms that would operate in the Czech Republic as suppliers to Hyundai. It is expected that these companies will create 6,500 new jobs in the country.

“So far, the Czech Republic has attracted fewer Korean investments in comparison with investments from other Asian countries. The country is a favourite destination of Japanese and Taiwanese investors. There are currently 170 Japanese and 20 Taiwanese companies operating here. We would like to utilise the huge potential that Korea possesses,” adds Jaromir Cernik, director of CzechInvest’s regional office for Southeast Asia in Hong Kong.

The new advisor will be responsible for creating a marketing strategy and for supporting existing and potential South Korean investors in the Czech Republic, while also taking part in negotiations with potential investors. His experience and knowledge of trade practices and business culture in South Korea will also play an important role.

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Founded in 1967 as a state bank to support foreign trade, Korea Exchange Bank is one of seven commercial banks in Korea. In 1999 the bank was privatised and has since established itself as a universal banking institution with more than 300 branches in Korea and 28 branches abroad. It focuses primarily on business clientele, investment financing and foreign-trade activities.