Most foreign businesses in South Korea would freeze their investments if the United States imposes economic sanctions or takes military measures against North Korea, a recent survey indicates.
According to the Seoul-based East Asia Institute, 63 percent of the 169 leaders of foreign companies in South Korea it surveyed said they would withdraw or halt their foreign direct investments here if Washington establishes a naval and air blockade of North Korea. And if Washington takes military action, 73 percent said they would halt their investments.
The survey, conducted from February to May, was the first to gauge possible reactions from foreign investors since the diplomatic crisis over North Korea’s nuclear programs broke out in 2002.
The respondents also said they would be more apt to halt investments if the United States took action without the cooperation of South Korea. Two-thirds said they would stop their investment activities if Washington unilaterally imposes an air and naval blockade, while only 53 percent would do so if South Korea is involved.
"It means foreign investors feel less threatened when the anti-North measures are made with the cooperation of both countries," an institute analyst, Jeong Han-wool, said, noting the investors may also consider the economic merits such cooperation between the two allies could produce.
The survey also showed that foreign businesses are closely watching the U.S. troop reduction plan; 39 percent said they would stop investing in the country if the U.S. pulls most of its 37,000 troops out of Korea over the next several years.
By Park Shin-hong, Jung Ha-won