Turkey Expected to Attract South Korean Investments

Turkey is expected to attract a new series of investments from South Korea with a total value of $2.5 billion following the anticipated signing of a free trade agreement (FTA) between the countries soon. Turkey and South Korea are now close to signing an FTA in a move to bring down trade barriers between the two G-20 members, Economy Minister Zafer Çağlayan told reporters during his visit to Seoul on Thursday. “The Asian country is expected to shortly send three of its largest companies to invest in Turkey,” Çağlayan announced in the South Korean capital.

According to the minister, a South Korean company is planning to invest $1.5 billion in Turkey. The minister, however, said the company has asked that it not be named until the details of the investments are made clear.

Turkey’s Kibar Holding and POSCO signed a $350 million deal in June for the construction of a stainless cold-rolling plant in the northwestern province of Kocaeli in January 2012. Hyundai, the world’s fifth-largest vehicle producer, is also expected to commence a $400 million investment that will increase the yearly auto production of Hyundai’s factory in İzmit from 100,000 to 200,000 vehicles by 2015, while adding 2,000 new jobs. Çağlayan said he would meet with Hyundai executives to ask them to establish a car engine manufacturing factory in Turkey.

Çağlayan and a delegation of businessmen are in Seoul to finalize talks for an FTA with South Korea. The minister said there were some disagreements concerning the signing of the deal, adding that the government expected to “sort out the differences” no later than the year’s end.

Mentioning the steel investment, Çağlayan said he had asked the company to increase the annual production target to 1 million tons. The annual production capacity of the plant was announced earlier to be 200,000 tons. If POSCO raises the annual production capacity to the level Çağlayan has suggested, the total value of the investment is expected to reach $1 billion.

Çağlayan also met with representatives from South Korean import companies and said the government will contact 8,500 new South Korean firms to increase Turkey’s share in the country’s imports. South Korea imports a total value of $500 billion per year.
Turkey to produce 15 million tablet PCs domestically

Asked whether the $1.5 billion investment, the source of which remains anonymous, will fund the Movement to Increase Opportunities and Technology (FATİH) project, Çağlayan said he would give no further details. The government has plans to distribute 15 million tablet PCs to elementary school students in four years as part of FATİH.

The project seeks to increase standards and quality in education by using advanced technology such as electronic boards, projectors and a gradual transition to e-textbooks in classes. The minister said the new investment would manufacture products Turkey currently imports. Industry and Technology Minister Nihat Ergün had earlier said Turkey wants the 15 million tablet PCs to be domestically produced.

Çağlayan is expected to proceed to the US to discuss opportunities of starting the production of tablet PCs as part of the FATİH project with American technology firms. “Our priority is to produce these tablet PCs in Turkey. … We expect this project to help the Turkish software sector gain momentum.”

11 August 2011
SOURCE: TODAYS ZAMAN