Effect of the Joint Investment Between Korean Corporations( SK and GS) and Foreign Enterprises
|Author||Jang Yoon-Jong, Shim Woo-Suk||Date||2013.12.16||Issue No||573|
More than a $2 trillion joint investment between Korean enterprises such as SK Chemicals, GS Caltex and SK Lubricants, and Japanese corporations has stalled due to the delay in the revision of relevant law.
The three cases of the joint investment which are the large-scale projects, are expected to have a great job-creation effect at the stage of their plant construction.
● The plant construction in which approximately 1.7 trillion won would be invested, would bring about the creation of 18,535 jobs, and once the plant begins its operation, it would create additional 13,836 jobs through the production expansion of 5.8 trillion won.
● New jobs would be created in the various industries such as manufacturing, wholesale/retail, construction and professional service sectors.
The joint investment is expected to contribute greatly to finding a breakthrough for Korean petrochemical industry.
●The petrochemical industry is entering the phase of a crisis which is difficult for the industry to deal with because of the expanded global supply provided by the enterprises in Middle-East, the accelerated self-sufficiency of China and the expected production of low-price oil products based on shale gas in the U.S.
● Under this circumstance, the joint investment for the expansion of the production of Para- Xylene whose demand is expected to soar in the Chinese market, would make a contribution to vitalizing the industry through the increased export to China.
As its additional effects, it would contribute to breaking the deadlock in the Korea-Japan industrial cooperation, and would create the public sentiment favorable for the investment environment in Korea by reaffirming the strong determination of Korean government and political community to attract foreign investment.