Korean investors eyeing Mexico

Wednesday, 03 December 2014 00:10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

thenews.com.mx

Korean investors eyeing Mexico

THE NEWS

Structural reforms championed by the federal government and favorable conditions in the Mexican market are attracting more Korean companies said Korean Ambassador to Mexico Seong Hoa Hong on Tuesday.

During a presentation about the social responsibility of companies in Mexico, the diplomat said that there are 1,600 firms with Korean capital in Mexico that employ around 50,000 Mexicans.

Korean companies can be found in practically all areas of the Mexican economy in the electronic, automotive, energy and mining sectors, creating quality jobs around the country.

In 2014 alone, 10 more companies with Korean capital set up shop in Mexico and the number is expected to go up in 2015 on the heels of structural reforms, said the ambassador.

Social responsibility is a fundamental activity for Korean companies, said Hoa Hong.

There is no charity without a sustained effort to transform social consciousness, he said.

It is extremely important for Korean companies to participate in the geographic climate where they are operating he said.

It is vital that Korean companies help the population improve their living conditions by not only sharing their earnings but also by giving the people tools to progress on their own, said the ambassador.

Korean business leaders have found great allies in their Mexican counterparts with whom they share the conviction that the biggest companies are those with the highest quality services and products, but at the same time contributing to the communities in which they operate, he said.

Mexico-Korea Chamber of Commerce President Oh Pying Mon said that the social responsibility of companies is not limited to reducing the divide between rich and poor, but also in creating conditions of prosperity in the community.

Kia To Open $1.5 billion Mexico Assembly Plant

koreancarblog.com

BY JOSE ANTONIO LÓPEZ

AUGUST 19, 2014

Kia Motors Corp. is in talks with Mexico to open a new auto assembly plant worth

 at least $1.5 billion, officials from Nuevo Leon’s state government said on Tuesday.

Rolando Zubiran, secretary of economic development in Nuevo Leon, said 

negotiations on the plant were under way and involved Nuevo Leon, the Mexican 

federal government and Kia, an affiliate of Hyundai Motor Corp. 

“It’s more than $1.5 billion,” Zubiran said, referring to the planned investment. 

He added that Nuevo Leon hoped the deal would be concluded during the first 

two weeks of August. 

The plant, which sources say will have an annual capacity of some 300,000 

cars, would be built on the northeastern fringe of the city of Monterrey, 

according to several people familiar with the matter who spoke on condition 

of anonymity. Zubiran said details were still being discussed. 

Sources in South Korea previously told Reuters that the plant will initially begin 

producing two small cars. The plant could help meet rising demand in the United 

States where Kia operates just one plant. Output at the U.S. plant, in West Point, 

Ga., is shared with Hyundai Motor Corp. 

Kia would join Honda Motor Co. and Mazda Motor Corp. is building assembly 

plants in Mexico to produce smaller light vehicles. One person familiar with the 

negotiations said the Kia plant could pave the way for Korea and Mexico to 

resume stalled bilateral free trade talks. 

The Kia plant would also be the latest in a series of major investments by global 

automakers in Mexico in recent months as they take advantage of the country’s 

growing industrial base, low wages and tariff-free access to the U.S. market.

6 years after talks failed, South Korea wants a trade deal with Mexico

A recent photo exhibition at the Korean Cultural Center in Mexico City.

 

 

 

 

 

 

 

Mexico News Daily | Monday, August 18, 2014

 

South Korea is Mexico’s sixth largest trading partner, but the two countries do not have a trade agreement. South Korea would like to change that, says its foreign relations ministry, by reopening trade talks.

The ministry’s Seo Won-sam points out that Mexico already has free-trade agreements with its top five trading partners. Trade talks between the two countries were suspended six years ago because of opposition from the petrochemical, steel and automotive industries, he said in an interview.

Seo argues that Mexican companies with monopolies would be strengthened when faced with doing business in a competitive market, and there are further benefits for consumers in terms of lower prices.

He says Mexico is an attractive market for its geographic location, skilled labor and good infrastructure. “Countries such as Chile, Peru, Colombia and Brazil are enjoying investment that previously went to Mexico. But due to the efforts and achievements of the reforms, Mexico is emerging once again as an attractive nation in which to invest.”

Seo says the two countries have complementary economic structures, a bonus for bilateral cooperation. “Mexico represents an opportunity for the Korean people as much as it does for businesses.”

A group of Korean companies led by Korea Electric Power Corporation is already looking at two power plant projects that have been opened to international bidding. They are two combined-cycle natural gas generation plants whose combined cost will be close to US $2 billion.

Mexico’s ambassador to South Korea says developing this country’s neglected power generation network could mean lucrative contracts for Korean firms. “It will mean many new opportunities for Korean companies particularly in the electricity generation sector. They are well known in the oil and gas sector as well, but I think they enjoy a competitive edge in the electricity sector,” said José Luis Bernal in an interview last week.

“There will be many new opportunities in this sector because of the new reforms. Mexico needs $60 billion in annual investment in the oil sector alone, and Pemex can cover only $25 billion in new investment. New shale gas reserves in northern Mexico could be tapped for further development of Mexico’s natural gas sector.

About 13,000 South Koreans currently make their homes in Mexico.

Source: AM (sp), Korea Herald (en)

- See more at: http://mexiconewsdaily.com/news/6-years-talks-failed-south-korea-wants-trade-deal-mexico/?utm_source=fb&utm_medium=fb&utm_campaign=koreatrade#sthash.ZCZeGTW4.dpuf

Korean Firm Invests in Mazatlán

by Maureen Dietrich on 6 Dec 13 
mazmessenger.com
 

Opening its first franchise in Sinaloa, the Korean auto service center Llantera Hancock was inaugurated yesterday at its new location on Av. Óscar Pérez Escobosa in colonia Arrecifes.

The company which provides tires and maintenance services for cars, trucks and buses, will employ 12 people and invested 11 million pesos in its location.

Manager of the center, Raúl Ríos Mendoza, told reporters at the opening that the company plans to open a second tire and service center on Av. La Marina in 2014.

(from Noroeste)

Mexico's Pemex inks $2 bln credit line deal with Korea Eximbank

MEXICO CITY | Wed Oct 16, 2013 
 

MEXICO CITY Oct 16 (Reuters) - Mexican state oil producer Pemex said on Wednesday it had signed a memorandum of understanding with Korea Eximbank to open a $2 billion credit line for financing a range of projects.
The credit would also be available to other companies providing services to the Mexican oil producer, Pemex said.

"Pemex will now count on a new financing option to realize new projects that will allow it to increase production and the profitability of the company," Pemex said in the press release.

The financing deal comes the day after Pemex declared the tender void for the second phase of Mexico's biggest natural gas pipeline project void after only one bidder made an offer on the $1.8 billion project, casting doubt on the country's future supplies of cheap natural gas.

Mexican envoy positive about role of a network of middle-power nations

Foreign ministers of MIKTA pose for a photo during the first meeting in New York, Sept. 25. / Courtesy of Ministry of Foreign Affairs

By Kim Se-jeong
 koreatimes.co.kr
 

Mexican Ambassador Jose Luis Bernal

MIKTA is a new acronym in diplomatic circles.

It represents five countries — Mexico, Indonesia, Korea, Turkey and Australia — a group of “middle power” nations that recently launched a dialogue forum.

The official opening was in September in New York where five foreign ministers met on the sidelines of the United Nations General Assembly.

Amid the strong presence of BRICs — Brazil, Russia, India and China — will MIKTA be able to survive, and have long-term influence?

The ambassador of Mexico in Seoul says he is positive about the future. His country is the first to hold the secretariat role in MIKTA.

“We share what we have in common, although we are not similar. And together we can get our act together to solve issues like climate change,” Ambassador Jose Luis Bernal told The Korea Times last week.

He also noted the gap-bridging role some members of MIKTA are playing, which to him is a significant contributing factor in increasing cooperation in global affairs.

The five countries are currently brainstorming on issues of shared interest about which all five can speak together. The members are also working to come up with a framework for the group.

Climate change, democratization, United Nations reform and nuclear disarmament are very much shared, while issues such as cyber space security and international development were sought by the Korean govern in particular.

As a consultative body, MIKTA remains without a specific interest as seen in the Asia-Pacific Economic Cooperation (APEC) or ASEAN with a strong economic interest.

Ambassador Bernal also reiterated the importance of different networks in contemporary-era diplomacy.

There is an increasing number of nation groupings based on geographical and economic interests. The most dynamic stage is international trade where new bilateral and multilateral tariff-free, or reduced, trade partnerships are formed.

Korea and Mexico are part of APEC and the Pacific Alliance, a group of four Latin American countries on the Pacific Rim — Mexico, Colombia, Chile and Peru — with a focus on Asia. Korea is an observer at the Pacific Alliance. The Trans-Pacific Partnership negotiations involving 12 countries are currently underway, and Korea is reportedly contemplating joining.

As far as bilateral relations are concerned, the ambassador, who is three months into the job in Korea, signaled a shifted priority in signing the free trade agreement with Korea.

In bilateral trade, Mexico has suffered a significant deficit for a long time, and has sought to narrow the deficit gap via the accord.

“Mexico has its own source of surplus with other countries,” he said. Korea’s exports to Mexico are around $11.5 billion, whereas Mexico is at $3.5 billion.

A meeting between presidents of the two countries last week in Bali agreed on finding ways to restart the negotiations which have been on hold since 2008 after the second round of negotiations.

A trade ministry official following the issue and the leaders’ Bali meeting said that Korea is willing to resume negotiations, whereas Mexico is confronting political challenges domestically.

Mexico’s strong agricultural sector, including cultivation of avocados, onions, limes and lemons and asparagus, is anticipated to be the biggest beneficiary of the accord. However, so far, the endeavor to open the Korean market has been unsuccessful due to strict quarantine requirements.