By Jon Lee

The Federation of Middle Market Enterprises of Korea (FOMEK) invited Mexican Ambassador to Korea Carlos Penafiel Soto to a meeting of mid-sized businesses held at the Plaza Hotel on Aug. 18 and discussed specific support measures to resolve difficulties and support successful entry of mid-sized companies into Mexico.

More than 20 people attended the meeting, including Mexican Ambassador to Korea Carlos Penafiel Soto and senior officials from mid-sized companies such as SIMPAC, Yura Corporation, Infac, Shinsung Delta Tech, Kodako, and Lee Ho-joon, full-time vice chairman of the FOMEK.

Mid-sized businessmen said that comprehensive support such as ▲ strengthening investment incentives ▲ preparing excellent manpower supply and demand policies ▲ improving administrative procedures is needed for mid-sized companies to actively enter the Mexican market and operate stable local businesses.

According to the "2021 Survey on Mid-sized Enterprises" by the FOMEK, Mexico ranked third (5.5%) after Vietnam (10.6%) and the United States (10.2%) in terms of advancement into overseas markets by mid-sized companies. 

In addition, as global automakers such as Tesla and BMW have recently expanded their investment in Mexico, interest in key companies in the auto parts, machinery, and equipment sector, is increasing.

Mid-sized businessmen stressed that they hope to expand new investment and strengthen the support system for local corporate operations, such as ▲ expansion of investment tax support ▲ opening direct flights between Korea and Mexico ▲ inducing long-term employment of local workers.

In addition, they said, "We hope that the Korean government will actively improve administrative procedures, such as ▲ shortening the VAT refund period to enhance liquidity of funds ▲ improving tax audit standards ▲ simplifying customs clearance procedures ▲ expanding customs clearance time to the U.S."

Mexico is Latin America's largest trading partner with 124 mid-sized companies, or 6.1% of 2,306 export mid-sized companies, said Lee Ho-joon, vice chairman of the FOMEK.