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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

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