[Exclusive] AmCham to Establish "Asia Headquarters" Task Force with Korean Government

James Kim, Chairman of AmCham, in Interview with Asia Economy
"Discussing TF Formation with MOTIE and MOEF"
"Now Is the Perfect Time for Attraction... Environment Needs Improvement"

The American Chamber of Commerce in Korea (AmCham) has decided to work with the Korean government to establish a task force (TF) aimed at attracting the "Asia headquarters" of major global companies. Previously, AmCham released the "Strategy Report for Attracting Global Companies’ Asia-Pacific Headquarters to Korea," recommending that Korea should bring in Asia-Pacific headquarters of global firms. Now, the organization is taking concrete steps to implement this initiative. It is also considered unusual for a foreign economic organization like AmCham to form a joint TF with the Korean government.

James Kim, chairman of AmCham, is giving an interview to Asia Economy at the office in Yeouido, Seoul. Photo by Yongjun Cho jun21@

James Kim, CEO and Chairman of AmCham, recently stated in an interview with Asia Economy, "We are currently in discussions with the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance to form a TF." Although he described the process as being in its "early stages," with only two meetings held so far, he added, "I believe we have effectively already started the TF’s activities. I expect continued progress going forward." He also mentioned, "If necessary, I could serve as the chairman of the TF."

The TF will be tasked with attracting the Asia-Pacific headquarters of global companies to Korea. According to AmCham’s "2024 Business Environment Survey" of its 800 member companies, foreign firms indicated that, after Singapore, Korea is their second most preferred location for an Asia headquarters. However, it is reported that fewer than 100 companies currently have their Asia headquarters in Korea. This is far below the numbers for Singapore (about 5,000), Hong Kong (about 1,400), and Shanghai (about 900).

Chairman Kim explained, "We are comprehensively reviewing various aspects, including not only the target number of companies to attract, but also what kinds of companies Korea needs and which areas the government should improve." He continued, "Attracting Asia headquarters will be an opportunity for Korea to solidify its position as a leading player in global industry by increasing the scale of foreign direct investment (FDI) and creating influential jobs." He emphasized, "Now is the perfect time to pursue this."

However, Kim stressed that improving Korea’s domestic infrastructure is a prerequisite for successfully attracting Asia headquarters. In particular, he pointed out the need to improve the "unpredictable regulatory environment" and enhance "labor flexibility." He noted, "Various surveys show that Korea lags behind regional competitors such as Japan, Hong Kong, and Singapore in terms of labor flexibility." He added, "If Korea can create an environment where companies can quickly adjust their workforce in response to changing market demand-reducing staff during tough times and expanding during good times-it will become a much more attractive investment destination for businesses."

He also highlighted the need for regulatory reform. Kim said, "CEO risk and digital economy regulations are unique to Korea and are rarely seen in other countries." He further pointed out, "Korea is virtually the only country where the Serious Accidents Punishment Act imposes such heavy criminal liability on CEOs." He added, "Given Korea’s strategic importance in the global arena, it is necessary to ease market regulations and improve market accessibility." He advised, "This cannot be achieved overnight; it must be approached step by step."