March 2014 March 2014 10 Meet the Ambassador nand Mahindra was appointed an Honorary Ambassador of Foreign Investment for Korea in 2011. He is the Chairman & Managing Director of Mahindra & Mahindra, a multinational Indian automobile manufacturer headquartered in Mumbai, India and part of the Mahindra Group, a USD 16.7 billion organization and one of India’s top 10 industrial houses. The Mahindra Group acquired a controlling stake in Korea’s SsangYong Motor Company (SYMC) in 2010. For more than two years, Mahindra has been instrumental in promoting Korea as an investment destination for Indian companies and working to deepen economic cooperation between India and Korea. We talked to Mahindra about his work as an Honorary Ambassador, his views on Korea and his thoughts on Korea-India relations, which he calls economically “symbiotic.” You’ve been an Honorary Ambassador of Foreign Investment for Korea since 2011. How would you describe your journey as an ambassador thus far? I feel privileged to have been the Honorary Ambassador of Foreign Investment for Korea since 2011. I became the Honorary Ambassador soon after the Mahindra Group’s automotive busi- ness acquired a controlling stake in SsangYong Motor Company and that experi- ence has certainly played an important role in converting me into a vocal advocate of Korea in domestic and international forums. However, I must admit that the experience of trying to attract investment into a devel- oped country like Korea is very different from attracting capital to a developing country like India. “Brand Korea” is well entrenched in global markets and Korean products are a highly regarded symbol of quality, technolo- gy and innovation across the world today. So, even as fiscal concerns overshadowed the global economy over the past few years, I am optimistic that Korea will be one of the first ports of call as investment activity picks up and as competition intensifies to capture the Asian market. Given its capabilities in engineering and technology and its reputation for quality and innovation, I see Korea as an ideal destination for investment for every global multinational. What were your goals for Korea- India relations when you were first appointed ambassador more than two years ago? As we embark on a new year, what are your goals today? Over the last two years, India and Korea have been able to lay a very strong foundation for their relationship. India’s strategic relationship with Korea focuses not only on the economic sphere, but also encompasses cooperation in cultural, research and development, military and geo- political arenas. India-Korea trade is already greater than USD 18 billion, and with the Comprehensive Economic Partnership Agreement signed in 2009, ties between Asia’s 3 rd and 4 th largest economies are bound to increase even further. The deepening of this relationship was further cemented during President Park Geun-hye’s visit to India in January this year. As we embark on a new year, I hope to play a role in further deepening the relation- ship so that the two countries can work together to help make Asia the engine of growth of the world economy. During your meeting with Korean President Park Geun-hye in January, you expressed your opin- ions about the potential of the eco- nomic relationship between Korea and India. Can you expand on this? How can our countries togeth- er help Asia become a growth engine of the global economy? India and Korea are, in a sense, at opposite ends of the development spectrum. Korea has made remarkable strides in its economic development over the past three decades. From 1980 to 2010, Korea’s GDP expanded from a mere USD 88 billion to USD 1.46 trillion. In that same timeframe, Korea went from being a recipient of devel- opment assistance to becoming one of its major donors. Despite a small population and a paucity of natural resources, Korea was able to achieve this transformation by investing in industries like heavy engineering and high- end technology, which have made it a global export powerhouse. Today exports account for over half the GDP and Korean companies are constantly on the lookout for new markets for their products. India, with its large population, offers a large market for these goods and services. India would like to replicate the type of growth Korea saw in the 1980s and 90s. However it needs modern technology and infrastructure in order to achieve this and to ensure that the benefits of growth are deliv- ered to its dispersed population. Therefore, India and Korea provide each other a very symbiotic economic relationship. If Korean technology and innovation can work to address India’s infrastructure and developmental challenges, they can together find the secret sauce that can, in fact, be deployed across Asia, helping the continent become a growth engine for the global econo- my. Why should Indians invest in Korea? What Korean sectors are most attractive to Indians and why? India and Korea have much to offer each other. Korean multinationals like Samsung, LG Q&A With Anand Mahindra and Hyundai have demonstrated that India's billion-plus population can be a large, attrac- tive market for Korean products. And as I said earlier, “Brand Korea” is already well established in global markets whereas “Brand India” can learn some very valuable lessons from Korea and shorten its learning curve. Indian companies can draw from the experience of Korean companies and improve their quality, innovation, processes, etc. besides understanding new age sectors like technology, heavy engineering, etc. where Korean companies hold a significant leadership position. Having a presence in Korea for this pur- pose becomes a necessity, and given the Mahindra Group's own experience, I would strongly urge Indian corporations to establish a presence and invest in Korea. As for Mahindra Group, what investments in Korea are on the horizon for the future? The Mahindra Group already has a large investment in Korea through its stake in SYMC. The turnaround in the fortunes of SYMC has been remarkable and speaks vol- umes about the commitment and hard work of our SYMC colleagues. This also enabled us to rehire some workers who were on unpaid leave due to the company’s financial woes. We remain committed to SYMC and our investment plans in the automotive space will be determined by the long-term strategy con- siderations required to support SYMC's busi- ness plans. However, the Mahindra Group hasn’t restricted itself only to the automotive sector in Korea. Our Group company, Mahindra & Mahindra Financial Services Ltd., recently signed a memorandum of understanding with the Seoul-based Woori Financial to evaluate the feasibility of setting up a joint venture to provide financing solutions to the customers of SYMC vehicles. Even in sectors where the Mahindra Group may not be present, we have been encourag- ing closer business relationships with Korea. For example, I have been promoting the Korean auto components industry within India and the Mahindra Group itself has start- ed sourcing components and encouraging alliances with several Korean suppliers. What are three words that come to mind when you think ‘Korea,’ and why? My impressions of Korea have been formed by the Mahindra Group’s experience with SYMC and my personal experience with Korean culture and Korean brands. Therefore the three words that come to my mind when I think of Korea are commitment, innovation and adaptability. I will explain why. My experience with SYMC has shown how meticulous Koreans are in their planning process. Our Korean colleagues at SYMC, for example, are known to stick to the commit- ments they make, despite any challenges that they may be confronted with. Similarly, the fact that Samsung is the only true competition to Apple in today’s highly competitive and fast-moving cell phone mar- ket is a testimony to the innovative capabili- ties of Koreans. And finally, the people of this intelligent, hard-working nation also know how to adapt and keep pace with the times, rather than being restricted by their culture and customs. The success of artists like Psy and his “Gangnam Style” video had not just the Koreans, but the world shaking a leg to its beats. What are some similarities between Indian culture and Korean culture? Cultures are formed over protracted periods of time and given that both India and Korea have long histories, one can identify innumer- able similarities between the two cultures. Both cultures place a tremendous impor- tance on the family as a close-knit unit and emphasize the importance of education. Even within education, I was surprised to note the emphasis on memorization and the preva- lence of several highly competitive entrance examinations, which I thought were the bane of the Indian education system. I found they are very common in Korea as well. In fact, the similarities are so numerous that they extend to the business arena, too. While the Korean industry is dominated by business groups (chaebols), the Indian corporate land- scape also has a large number of family-man- aged businesses. In fact, the Mahindra Group itself was founded by my grandfather and granduncle in 1945. In hindsight, probably, it is the similar approaches to business and the longer-term outlook that business groups bring that enabled us to cope with the situa- tion at SYMC so well. All the more reason why more Indian cor- porations should be investing in Korea. I’ve read that you enjoy world cinema. What is your favorite Korean movie? The movie I enjoyed immensely is the 2009 movie called “Mother,” or, to use its original title, “Ma-deo.” By Young Chang [email protected] Meet the Ambassador 11 A