Invest KOREA

During a luncheon meeting with the heads of major foreign-invested companies in Korea on Feb. 14, President Yoon Suk Yeol pledged to provide regulatory and tax benefits for them, citing their significant contributions to the local economy. In S. Korea, a company with which a foreigner has over 10 percent of voting rights as a result of a KRW 100 million (USD 74,800) investment can register as a foreign-invested company. According to the Ministry of Trade, Industry and Energy, S. Korea currently has over 17,900 foreign-invested companies.

The luncheon was hosted at the Korea Chamber of Commerce and Industry in Seoul, where representatives of 12 foreign companies and chairs of foreign chambers of commerce were in attendance. President Yoon expressed his gratitude to the companies for their contribution to Korea’s record-high foreign direct investment last year, which amounted to USD 32.72 billion. He also mentioned that exports by foreign enterprises in S. Korea account for 21 percent of the nation’s total outbound shipments. Yoon said, "You all are greatly contributing to our country's economy, and I think it is time for our government to provide systems and a regulatory environment that meet, or are more favorable than, the global standard, and not spare various tax and other support measures."

To this end, Yoon said the government will work with the National Assembly on legislative and budgetary issues requiring its cooperation, but push ahead with measures within the president's power, including subordinate legislation, noting that foreign-invested companies also provide 6 percent of S. Korea’s jobs.
In addition, during the luncheon, Minister of Trade, Industry and Energy Ahn Duk-geun delivered a presentation on ways to encourage foreign investment to S. Korea. Participants also held active discussions on ways to increase investment in the country and offered their suggestions on how to further improve Korea’s financial, labor and energy environments to make them more attractive to foreign investors.
Representatives of companies from the United States, Japan, Saudi Arabia, Germany, and France asked Yoon to ease business regulations which are unique to S. Korea. Notably, the American Chamber of Commerce in Korea emphasized that the country’s potential to position itself as a business hub for high-tech industries could be further achieved on the back of improved regulations on network separation, lessening the complications experienced by foreign firms in terms of global cloud integration. The French Korean Chamber of Commerce and Industry highlighted the need for S. Korea to integrate global certification and standards, which would ensure equitable access for foreign companies to sandbox certain projects and national growth plans. It also suggested the establishment of a streamlined cash grant system for foreign investors, and noted that this initiative aligns with Yoon’s “Market Economic Driven Vision.”