The permanent organization of the government cooperation team, which was temporarily established to support the $30 billion domestic investment from the United Arab Emirates (UAE) attracted by President Yoon Suk-yeol early last year, is being promoted. The government has been striving to attract long-term investment funds after succeeding in joining the World Government Bond Index (WGBI) in October. There has been a demand to continue the role of the cooperation team, which has been in contact with various investment sources outside of the UAE. Increased reorganization of the organization is being considered to strengthen network expansion due to the economic turmoil caused by the impeachment situation.
According to the Ministry of Strategy and Finance on the 17th, the ministry recently started practical consultations with the Ministry of the Interior and Safety's organization planning division to regularize the 'International Investment Cooperation Team.' The International Investment Cooperation Team is a voluntary organization established under the Ministry of Strategy and Finance's directive on 'Regulations on the Establishment and Operation of the Voluntary Body International Investment Cooperation Team,' and it was launched in February this year. It is set to end its operation in February next year.
According to the 'General Rules on the Organization and Personnel of Administrative Agencies,' a voluntary organization is a director-level body established and operated using temporary personnel. In principle, it operates temporarily for a maximum of one year (6 months + 6 months). The reason the Financial Investment Support Team, the predecessor of the International Investment Cooperation Team, was established in February last year and operated until Feb. 21 this year is due to these regulations.
The Financial Investment Support Team was created last January to support the $30 billion sovereign wealth funds investment attracted during President Yoon's state visit to the UAE. However, the necessity of continuing support activities was raised, and the International Investment Cooperation Team was established to carry out the same role.
Since its launch, the International Investment Cooperation Team has been contacting several countries other than the UAE to diversify investment destinations. It is known to have recently focused on expanding its network to attract investments from other sovereign wealth funds, such as Canadian pension funds.
Moreover, with the approval of Korea's inclusion in the WGBI, one of the world's three major bond indices, in October, the role of the International Investment Cooperation Team has become more significant. A Ministry of Strategy and Finance official explained, “With the approval of WGBI inclusion, it has become more necessary for Korea to attract long-term investments,” adding, “Plans are to expand contacts with other partners (countries) to induce long-term investments.”
However, as the International Investment Cooperation Team is also a temporary organization and has extended its operational period once in August, it cannot extend its duration further. Consequently, there has been criticism in the National Assembly for the need to supplement the sustainability of the investment support role, and the push for regularizing the organization has begun.
The Ministry of Strategy and Finance sees the need to strengthen the personnel of the International Investment Cooperation Team. Currently, positions such as the head of the team are vacant, and the team comprises three members, fewer than the prescribed five.
However, approval from the Ministry of the Interior and Safety is required for regularization. The Ministry of the Interior and Safety has yet to decide on approving the amendment of the job classification. An official from the ministry said, “Practical consultations have started, but a job classification amendment request has not yet been received from the Ministry of Strategy and Finance,” adding, “If a request is received, the necessity for regularization will be comprehensively reviewed.”