KIA’ relocation plan to send negative signals to Korean investor: KOTRA

[nag_mama]

EXCLUSIVE: KIA’ relocation plan to send negative signals to Korean investor: KOTRA

KOTRA has suggested the Central government to make some policy or law where state governments cannot change the commitment made by the previous governments at least by 15-20 years.

INTERVIEW

Moon, Young Kim, President, Southwest Asia, Korea Trade-Investment Promotion Agency (KOTRA). ACN Photo.

 

NEW DELHI: In a first, the South Korean Government’s apex trading arm Korea-Trade Investment Promotion Agency has said the incident of KIA Motors contemplating shifting it’s newly set up USD 1 billion car manufacturing plant from Andhra Pradesh to Tamil Nadu will send negative signals to existing and potential investors from Korea as well as other parts of the world.

Terming the development unfortunate, Young Kim Moon, President, KOTRA, South-West Asia told Asian Community News (ACN) Network that it happened at a time when a large number of Korean companies were seriously planning to make a massive investment in India.

India and Korea both have vowed to take the bilateral trade from existing USD 21 billion to USD 50 billion in text tend years, said Moon.

Kia opened its 23 million square foot facility in Andhra Pradesh to manufacture vehicles for both the Indian and overseas markets in December only. It now seems forced to think of taking the drastic step of moving it to somewhere in or around Chennai when the new state government asked companies to reserve 75% of all jobs for locals.

The state government is also reviewing some financial incentives – such as breaks on electricity tax and deferred land payments – given to the company by the previous government.

Following these developments, KIA, through its sister concern Hyundai is in talks with the Tamil Nadu government for looking for land for shifting its plant.

Also read: South Korea hitting hard to improve Indian image among its biz community

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Apparently irked, KOTRA that is striving hard to bring Korean investors to India, said, “It’s the promise and commitment made by the state government, not by a personal human being. So, this kind of promises should be kept irrespective of the change of the government.”

“The Central government should make some policy or law where state government cannot change its commitment made by the previous government. It will send a negative signal not only to Korea but to other countries too,” said Moon while demanding the central government’s intervention in this matter.

“There is an election every five years in India, but the commitment should be valid for 15-20 years. KIA is struggling in AP and negotiating with the government on new changes.”

When asked when if the same problem they face when KIA goes to TN, Moon said it’s a matter of some system or policy and should be handled unilaterally by the central government to ensure a safe business environment. Central government should guarantee the execution of the commitment, he added.

The KIA ‘s development highlights the challenges foreign investors face in India while dealing with policy changes at the central or state government level in India.

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

Asian Community News (ACN) Network

 

source: https://www.asiancommunitynews.com/exclusive-kia-relocation-plan-to-send-negative-signals-to-korean-investor-kotra/

[DummyVariable]

Fake News from South Korea

[DummyVariable]

Ltt

[TheBrahmabull]

jailgun gadu trend setter enthina..

 

PPAs cancel chesthe - Indian Govt Tribunal techindi to save those companies interests in future from juglaqs like this

KIA valla kotha rule testharemo.... oka sari oka govt okati chepthe ade follow avvali.. no rule changes ani

 

Raa... Ja.. Ka.. Ja

 

 

[Anta Assamey]

[TheBrahmabull]

as per langas... CBN managed know

[Chinna84]

2 minutes ago, TheBrahmabull said:

jailgun gadu trend setter enthina..

 

PPAs cancel chesthe - Indian Govt Tribunal techindi to save those companies interests in future from juglaqs like this

KIA valla kotha rule testharemo.... oka sari oka govt okati chepthe ade follow avvali.. no rule changes ani

 

Raa... Ja.. Ka.. Ja

 

 

@bhaigan 

[tom bhayya]

yello news pulkhas fake news @aakathaai789

[bhaigan]

1 hour ago, Chinna84 said:

@bhaigan 

KIA chala simple issue locals ni hire chesukomanaru anthe rupture started, locals ni hire chesukomani adgatam lo tappe ledu, anyway this is root cause analysis of communication gaps

Same with PPA' s costs tagginchukomanaru valu kuda gola gola chesinaru

Lessons learnt for Jaggu

[bhaigan]

1 hour ago, Chinna84 said:

@bhaigan 

Deeni meeda already ninna ne disco ayipoyindi