High land prices,complex tax regime keep Korean companies away from Pune

Speaking about the Korean presence in the automotive sector,he said while many of the small and medium scale companies have set up base in China,the slow down in the country is forcing them to look for greener options else where. “Many companies have migrated to south east Asian countries like Laos,Cambodia etc,” he said.

Asked about the reluctance of the small and medium scale companies to set up base in India and Pune in general,the Consul General said companies have complained of complex tax regime in the country. “In case of Pune,many smaller players have had difficulty in procuring land given the astronomical price the land has touched in the region,” he said.

There are around 80 Korean companies involved in the automotive and manufacturing sector in Pune and Mumbai. According to the Consul General,Chennai and Delhi have 120 and 160 such companies. “As per our records,there are 1,000 Korean nationals based in Pune and most of them are employed in the Korean companies here,” he said.

Compared to Mumbai,Pune of late has emerged as a preferred location for Korean nationals given the educational and other facilities in the area.