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and financial services. Charlotte, the state’s largest

city, is home to the second-largest banking center in

the United States.

North Carolina is the second-largest financial

center in the nation because we invest in global

connectivity and developing top-quality talent.

Companies focused on business and financial

services that have major operations here include

AT&T, Bank of America, Microsoft, TIAA, Wells

Fargo and many more.

Korean Companies in North Carolina

CS Carolina Invests $7.3 Million To Relocate Its

Manufacturing Complex To Burlington, North

Carolina

A Korean company that manufactures, sells and

distributes yarn, CS Carolina, Inc. invests $7.3

million to relocate and expand its operations from

Swepsonville to Burlington (Alamance County)

North Carolina, with plans to create additional 22

new jobs over the next three years.

“We believe in the revival of the textile industry in

North Carolina,” said In-Tae Joo, President of CS

Carolina. “We are excited to help lead the way with

our investments in the latest technology and our new

expansion.”

“It’s crucial that we continue to create an

environment where our existing businesses can

expand,” said Governor Pat McCrory. “North

Carolina’s manufacturing workforce help companies

like CS Carolina grow. We welcome these new

jobs to Alamance County and look forward to CS

Carolina’s contribution to continuing our state’s long

history in textile manufacturing.”

The project was made possible in part by a

performance-based grant from the One North

Carolina Fund. The One NC Fund provides

financial assistance, through local governments, to

attract business projects that will stimulate economic

activity and create new jobs in the state. Companies

receive no money up front and must meet job

creation and investment performance standards to

qualify for grant funds. These grants also require

and are contingent upon local matches.

Other partners that helped with this project

include: the N.C. Department of Commerce,

N.C. Community Colleges, Alamance County

Community College, Alamance County Area

Chamber of Commerce, Alamance County, the City

of Burlington and N.C. Ports.

44 G20 July 2016


Economy

Interview with the full-time Executive vice Chairman, Wonick Barn

1. Economic growth in Korea

is still centering around large

firms. What is the policy and

system which interrupt midsized

firms from developing the

most?

Systems regarding fair trade, tax,

and market should change first

among policies on mid-sized firms.

Since there are gaps between large

and mid-sized firms in every respect

regarding fair trade including profit,

wage, labor productivity, and R&D

investment, not only a fundamental

solution to address this issue is

needed but also limitations of the

Corporate Tax Act, the Income

Tax Act, and the Inheritance Tax

and Gift Tax Act that interrupt the

development of mid-sized firms

should be changed. In addition,

when a product is determined as a

competition product between small

and medium enterprises according

to ‘the competition product system

between small and medium

enterprises’ of the public purchasing

system of the small and medium

enterprises’ products, firms other

than small and medium firms (midsized

firms and large firms) cannot

tender for the public sector with

the product and due to ‘the list of

businesses suitable for small and

middle-sized firms’, the markets of

the mid-sized firms are also being

regulated. Those are the problem

that should be solved first.

2. ‘Polarization’ is also severe

among mid-sized firms and

many of them are regressed to

small and medium enterprises.

What is the way to recover

their growth?

The change in perception that the

development of mid-sized firms

is the requisite for the economic

growth of Korea and reasonable

changes in policies are necessary. If

the ratio of mid-sized firms become

1% of all firms in Korea, jobs will

be naturally created and the matter

of corporate social responsibility

will be solved. However, it is not

realized due to many limitations.

What mid-sized firms want is not

a simple support but free business

environment. Therefore, I hope

that mid-sized firms can become

the driving force of the Korean

economy reflecting the opinion

of mid-sized businesses in a short

period of time.

3. What is the role of the

government to help midsized

firms enhance global

competitiveness?

Korean mid-sized firms have

products and services with worldclass

technologies. It means that

they have high potential to grow

up as specialized firms that will go

beyond the narrow Korean market

lead the global market. In particular,

‘M&A funds for mid-sized firms’

should be realized so that midsized

firms can carry out strategic

reorganization to create new global

growth engine.

4. One of the important

problem that mid-sized firms

should solve is family business

succession. Some politicians

are regarding it as ‘a tax cut

for the wealthy’. What is your

opinion on this issue?

Only seven firms survived for more

than 100 years after foundation.

Among developed nations, Japan

has more than 3,000 businesses

with a history longer than 200

years, Germany has more than

1,500, and France has more than

300. Compared to those countries,

Korea is ridiculously falling behind.

The fact that many businesses with

a long history exist is an important

barometer to show that the economy

is healthy and competitive, but

in Korea, people regard it as

succession of wealth. The AHPEK’s

job is to name socially respectable

firms with a long history as

prestigious and long-lasting firms,

support them to carry out family

succession smoothly and survive for

a long time, and ensure continued

stability and new growth engine of

the national economy.

by Chief Editor Kim Deuk-hoon

72 G20 August 2016

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