Ali Koc cites legal uncertainties for businesses, urges for reform

Türkiye’s largest conglomerate, Koc Holding, faced fresh scrutiny after its vice chairman, Ali Koc, criticized the Türkiye’s judicial system, implying that legal uncertainties are hindering foreign investment.

Koc made the remarks in an interview with business-focused bloomberght.com during an event on Monday, where Ford Otosan—a major subsidiary of Koc Holding—unveiled three new electric vehicles produced at its plant in Craiova, Romania. Koc’s statement came after the recent political dispute between the government and the Turkish Industry and Business Association (TUSIAD) which resulted in legal action against TUSIAD representatives.

Arguing that the Turkish judiciary system is vulnerable to external factors like social media rumors, he said, “Our country, unfortunately has reached a point where many issues, especially legal matters, are driven by topics that gain traction on social media and are amplified there.”

This, Ali Koc implied, creates uncertainty and unpredictability for both businesses and investors, making it difficult to establish long-term economic strategies in the country.

Refuting recent rumors that the company was shifting its investments abroad, Koc emphasized that 95% of the company’s planned investments for 2021-2026—amounting to approximately $10 billion—are directed toward Türkiye. “Expanding the good work we do in our country to other places should only be a source of pride,” he said.

Ali Koc: Ford’s most successful partnership is with us

He also dismissed speculation that U.S. partner Ford was dissatisfied with their joint venture in Ford Otosan and was seeking to acquire Koc Holding’s entire stake in the company. “These are all fabrications. Ford’s most important and most successful partnership is with us,” he added.

Founded in 1959, Ford Otosan is a joint venture between the U.S-based Ford Motor Company and Koc Holding, with each holding an equal 41% stake. Ali Koc serves as the company’s chairman.

Ali Koc emphasized that transparency and trust in the judiciary are crucial for a stable investment environment, stating that the legal proceedings are not enough to defend the business.

“We unfortunately live in a country where those who speak the truth must prove they are telling the truth,” Koc said, referring to recent allegations suggesting Koc Holding’s involvement in a market manipulation probe at the Istanbul stock exchange (Borsa Istanbul), as well as criticism from the Turkish Industry and Business Association (TUSIAD) directed at the government.

His remark suggested that companies and individuals in Türkiye often find themselves in a position where they must constantly defend their integrity, even when there is no concrete evidence against them.

‘Investors want to feel secure’

Koc went on to highlight how legal uncertainties negatively impact investors. “A country with a dysfunctional legal system cannot easily attract investors,” he stated, emphasizing that businesses seek stability and predictability when making long-term financial commitments. He pointed out that when legal frameworks are inconsistent or appear to be influenced by political or social pressures, foreign investors hesitate to enter the market, fearing potential risks.

Despite his concerns, Koc acknowledged that Türkiye offers attractive incentives for investors. “I think we are perhaps in the best position when it comes to incentives,” he noted, referring to various tax benefits, grants, and government-backed support mechanisms designed to encourage investment in key industries.

However, he cautioned that incentives alone are not enough to secure sustainable investment. While financial perks may attract initial interest, long-term commitments from global investors require a stable legal environment, regulatory transparency, and confidence in the rule of law.

“We are very lucky. We have a magnificent country—its culture, geography, and, more importantly, its commercial potential. But investors want to feel secure. They want to see a clear path ahead. They don’t want to constantly revise their plans in short intervals. There is a vast amount of capital in the world searching for a safe harbor,” he said.

Yildirim Ali Koc, born in 1967, is a third-generation member of the Koc family and currently serves as the 37th president of Türkiye’s prominent sports club, Fenerbahce.

As vice chair of Koc Holding, he also serves as the chair of various subsidiaries, such as Ark Insaat, Bilkom, Digital Panorama, Ford Otosan, Koc Bilgi ve Savunma Teknolojileri, Koc Sistem, Koctas, Otokar, Otokoc, and Setur.