Foreign-invested companies are an important part of the Korean economy playing pivotal roles in total national sales, total exports, R&D and employment.
As of 2017, total sales generated by foreign-invested companies in Korea stood at around KRW 473 trillion, representing 11.9% of total national sales. Exports from foreign firms amounted to USD 109.5 billion, making up 19.1% of Korea's total exports. In addition, foreign-invested companies accounted for 5.7% of employment and 5.9% of R&D in Korea, making great contributions to the Korean 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.