AmCham pledges to make S.Korea Asia's top biz hub

The American Chamber of Commerce (AmCham) in South Korea on Thursday said it seeks to make the nation Asia's top business hub on the 70th anniversary of the alliance between both countries and AmCham's foundation.

AmCham Chairman and CEO James Kim told the chamber's New Year's news conference at the IFC Forum in Seoul, "We will provide all support so that the country is reborn as the best place to do business in the Asia-Pacific region."

"Considering Korea's strong infrastructure, human capital and integrated IT environment, AmCham believes that Korea has enough potential to emerge as the leading business hub," he added. "We will closely cooperate with the governments of both countries and continue playing a key role as a bridge connecting the governments and entrepreneurs of the two sides."

Kim proposed seven systemic improvements to maximize the country's competitiveness versus other business hubs in Asia like Singapore, Tokyo and Hong Kong.

The seven are secure competitiveness in corporate tax and the income tax rate for expats; ensure flexibility on the labor market; ease data policy; reform the financial regulatory environment; reduce the scope of criminal responsibility for CEOs; protect intellectual property rights; and comply with global environmental, social and governance standards.

On taxation, the chairman said, "Korea needs to raise its competitiveness," adding, "The fixed tax rate for foreign workers in the country introduced this year has an upper limit of 20 years, but Japan and Singapore apply such a rate permanently without restrictions like this."

Turning to CEO risk, he added, “It would be helpful to focus on prevention instead of punishment and reduce the scope of a CEO’s criminal responsibility.”

"The severity of punishment for CEOs in the country is quite high compared to other business hub countries in the region."

Write to Sang-Eun Lucia Lee at selee@hankyung.com