Foreign-invested companies account for 21% of South Korea's exports and 5% of employment... "Positive impact on strengthening industrial supply chains and technological capabilities"

Ministry of Industry Holds Forum with Foreign-Invested Companies and Related Experts

Foreign investment in Korea has reached a record high this year, with foreign-invested companies accounting for 21% of Korea's exports and 5% of employment.

On the 27th, the Ministry of Trade, Industry and Energy held a forum with foreign-invested companies and related experts to share the economic contribution of foreign investment in Korea and to promote the expansion of foreign investment.

An official from the Ministry of Trade, Industry and Energy explained, "Despite difficult domestic and international conditions, foreign investment in Korea has continued to increase, breaking record highs this year following last year. The number of registered foreign-invested companies has also steadily increased, currently reaching 18,794 companies. These foreign-invested companies account for 21% of Korea's exports and 5% of employment, indicating a high level of contribution to our economy."

At the forum, results of a survey on overall business activities targeting about 1,000 foreign-invested companies and an analysis of the status of foreign investment in Korea were shared.

The survey showed that 29.3% of the surveyed companies are conducting research and development (R&D), and the main procurement channel for product manufacturing had a higher domestic proportion than imports. The primary investment purpose of foreign-invested companies was market entry into the domestic market (63.7%). The Ministry analyzed that foreign-invested companies have a positive impact on strengthening domestic industrial supply chains and technological capabilities.

Regarding the status of foreign investment, investment in the manufacturing sector increased more than in the service sector, and greenfield investments, where foreign investors directly purchase land or build new facilities, were more frequent than mergers and acquisitions (M&A). In particular, foreign investment aimed at collaboration with domestic anchor companies increased, and investments were concentrated in advanced industries and the materials, parts, and equipment sectors.

Participants in the forum agreed on the importance of the role of foreign-invested companies in contributing to the domestic economy through supply chain stability, technology transfer, and job creation, and suggested that it is necessary to maintain Korea's investment attractiveness next year through improvements in the foreign investment environment and regulatory reforms.

Yoo Beop-min, Director of Investment Policy at the Ministry of Trade, Industry and Energy, said, "Although the global trade environment remains highly uncertain, we will continue close communication with foreign-invested companies and experts, and through public-private cooperation, we will expand foreign investment attraction and continue to increase its contribution to the domestic economy."