Economic Contribution of FDI
Foreign-invested companies are playing pivotal roles in the Korean economy, accounting for 18% of national exports, 6% of employment, and 13.4% of sales.
An important pillar of the national economy, foreign-invested companies
As of 2014, total sales generated by foreign-invested companies in Korea stood at around KRW 478 trillion, representing 13.4% of total sales of Korea. Exports from foreign firms amounted to KRW 103 billion, taking up 18% of total exports of Korea. In addition, foreign-invested companies accounted for 6% of employment and 6.2% of research and development in Korea, making great contributions to the Korean economy.
Economic contribution of foreign-invested companies (2014)
- Exports 18%
- Sales 13.4%
- R&D 6.2%
- Employment 6%
Quantitative and qualitative contribution to the economy
In the process of forging cooperative relationships with Korean partners, foreign-invested companies not only boost productivity of domestic firms by transferring sophisticated management techniques and advanced technology but enhance industrial structure by spreading healthy competition across all industry sectors. Foreign investment also strengthens competitiveness of Korean companies in the global market by helping Korean partners that possess technology but lacks financial capital expand into new markets. Foreign and domestic companies can also complement each other’s weaknesses in value chain.