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and financial services. Charlotte, the state’s largest<br />
city, is home to the second-largest banking center in<br />
the United States.<br />
North Carolina is the second-largest financial<br />
center in the nation because we invest in global<br />
connectivity and developing top-quality talent.<br />
Companies focused on business and financial<br />
services that have major operations here include<br />
AT&T, Bank of America, Microsoft, TIAA, Wells<br />
Fargo and many more.<br />
Korean Companies in North Carolina<br />
CS Carolina Invests $7.3 Million To Relocate Its<br />
Manufacturing Complex To Burlington, North<br />
Carolina<br />
A Korean company that manufactures, sells and<br />
distributes yarn, CS Carolina, Inc. invests $7.3<br />
million to relocate and expand its operations from<br />
Swepsonville to Burlington (Alamance County)<br />
North Carolina, with plans to create additional 22<br />
new jobs over the next three years.<br />
“We believe in the revival of the textile industry in<br />
North Carolina,” said In-Tae Joo, President of CS<br />
Carolina. “We are excited to help lead the way with<br />
our investments in the latest technology and our new<br />
expansion.”<br />
“It’s crucial that we continue to create an<br />
environment where our existing businesses can<br />
expand,” said Governor Pat McCrory. “North<br />
Carolina’s manufacturing workforce help companies<br />
like CS Carolina grow. We welcome these new<br />
jobs to Alamance County and look forward to CS<br />
Carolina’s contribution to continuing our state’s long<br />
history in textile manufacturing.”<br />
The project was made possible in part by a<br />
performance-based grant from the One North<br />
Carolina Fund. The One NC Fund provides<br />
financial assistance, through local governments, to<br />
attract business projects that will stimulate economic<br />
activity and create new jobs in the state. Companies<br />
receive no money up front and must meet job<br />
creation and investment performance standards to<br />
qualify for grant funds. These grants also require<br />
and are contingent upon local matches.<br />
Other partners that helped with this project<br />
include: the N.C. Department of Commerce,<br />
N.C. Community Colleges, Alamance County<br />
Community College, Alamance County Area<br />
Chamber of Commerce, Alamance County, the City<br />
of Burlington and N.C. Ports.<br />
44 <strong>G20</strong> July 2016
Economy<br />
Interview with the full-time Executive vice Chairman, Wonick Barn<br />
1. Economic growth in Korea<br />
is still centering around large<br />
firms. What is the policy and<br />
system which interrupt midsized<br />
firms from developing the<br />
most?<br />
Systems regarding fair trade, tax,<br />
and market should change first<br />
among policies on mid-sized firms.<br />
Since there are gaps between large<br />
and mid-sized firms in every respect<br />
regarding fair trade including profit,<br />
wage, labor productivity, and R&D<br />
investment, not only a fundamental<br />
solution to address this issue is<br />
needed but also limitations of the<br />
Corporate Tax Act, the Income<br />
Tax Act, and the Inheritance Tax<br />
and Gift Tax Act that interrupt the<br />
development of mid-sized firms<br />
should be changed. In addition,<br />
when a product is determined as a<br />
competition product between small<br />
and medium enterprises according<br />
to ‘the competition product system<br />
between small and medium<br />
enterprises’ of the public purchasing<br />
system of the small and medium<br />
enterprises’ products, firms other<br />
than small and medium firms (midsized<br />
firms and large firms) cannot<br />
tender for the public sector with<br />
the product and due to ‘the list of<br />
businesses suitable for small and<br />
middle-sized firms’, the markets of<br />
the mid-sized firms are also being<br />
regulated. Those are the problem<br />
that should be solved first.<br />
2. ‘Polarization’ is also severe<br />
among mid-sized firms and<br />
many of them are regressed to<br />
small and medium enterprises.<br />
What is the way to recover<br />
their growth?<br />
The change in perception that the<br />
development of mid-sized firms<br />
is the requisite for the economic<br />
growth of Korea and reasonable<br />
changes in policies are necessary. If<br />
the ratio of mid-sized firms become<br />
1% of all firms in Korea, jobs will<br />
be naturally created and the matter<br />
of corporate social responsibility<br />
will be solved. However, it is not<br />
realized due to many limitations.<br />
What mid-sized firms want is not<br />
a simple support but free business<br />
environment. Therefore, I hope<br />
that mid-sized firms can become<br />
the driving force of the Korean<br />
economy reflecting the opinion<br />
of mid-sized businesses in a short<br />
period of time.<br />
3. What is the role of the<br />
government to help midsized<br />
firms enhance global<br />
competitiveness?<br />
Korean mid-sized firms have<br />
products and services with worldclass<br />
technologies. It means that<br />
they have high potential to grow<br />
up as specialized firms that will go<br />
beyond the narrow Korean market<br />
lead the global market. In particular,<br />
‘M&A funds for mid-sized firms’<br />
should be realized so that midsized<br />
firms can carry out strategic<br />
reorganization to create new global<br />
growth engine.<br />
4. One of the important<br />
problem that mid-sized firms<br />
should solve is family business<br />
succession. Some politicians<br />
are regarding it as ‘a tax cut<br />
for the wealthy’. What is your<br />
opinion on this issue?<br />
Only seven firms survived for more<br />
than 100 years after foundation.<br />
Among developed nations, Japan<br />
has more than 3,000 businesses<br />
with a history longer than 200<br />
years, Germany has more than<br />
1,500, and France has more than<br />
300. Compared to those countries,<br />
Korea is ridiculously falling behind.<br />
The fact that many businesses with<br />
a long history exist is an important<br />
barometer to show that the economy<br />
is healthy and competitive, but<br />
in Korea, people regard it as<br />
succession of wealth. The AHPEK’s<br />
job is to name socially respectable<br />
firms with a long history as<br />
prestigious and long-lasting firms,<br />
support them to carry out family<br />
succession smoothly and survive for<br />
a long time, and ensure continued<br />
stability and new growth engine of<br />
the national economy.<br />
by Chief Editor Kim Deuk-hoon<br />
72 <strong>G20</strong> August 2016