Invest KOREA

During the first session of a two-part roundtable held via video conference on April 18, 2024, three honorary ambassadors of foreign investment promotion for Korea, appointed by the Ministry of Trade, Industry and Energy, discussed Korea’s investment environment and ways to enhance multilateral investment cooperation.

Each possessing a wealth of experience and knowledge in their respective fields, three honorary ambassadors of foreign investment promotion for Korea contributed to the active conversations that took place at the roundtable discussion, both to share and gain insights on Korea’s remarkable development into a favorable investment destination and ways to further promote the country as a great place to do business.

In the first quarter of 2024, Korea reached another milestone, recording an all-time high in foreign direct investment (FDI). When asked about the reasons Korea is emerging as such a popular investment destination, Takasugi Nobuya credited the Korean government under the leadership of President Yoon Suk Yeol for its efforts in being active in supporting foreign ventures, particularly in the form of cash support and incentives to foster innovation and attract foreign companies to the country. He also mentioned that the corporate culture in the country is increasingly oriented toward open innovation, enabling symbolic relationships that accelerate growth and innovation and creating the ideal environment for startups and foreign companies to not only grow but also bring innovative changes.

Alex Kim noted that Korea acts as a safe haven for business, especially amid the escalating tension between the US and China, mainly in terms of intellectual property rights compared to other Asian nations. Kim said that this, coupled with continued trust in Korea as a whole, now even through its wave of culture popularity through cuisine, music, and media, is adding to the country’s economic power and national status.

Michael Danagher added that he has seen Korea’s transformation over the last three decades—from a place that was not the most receptive country for foreign investment, to one that is now aware of the benefits that FDI brings to its economy and is proactively working to take advantage of this in a strategic, smart way. As one of the most committed members of the global trading community, Korea became a manufacturing hub for the world in protective equipment and vaccines during the Covid-19 pandemic, and now, is a rising leader in making defense equipment as well.

When asked about how Korea can strengthen multilateral investment cooperation and secure its position as a good place for investment, all of them agreed that there is a growing need for Korea to be more strategic in publicizing its advantages to the global community.

On the national level, Takasugi emphasized the need to strengthen Korea-Japan cooperation in all aspects, in the form of a free trade agreement (FTA), economic partnership agreement (EPA) or comprehensive economic agreement (CEPA), to enhance the business environment for companies of both countries. He said the two countries each have a tremendous amount of knowledge, talent and experience to offer one another for mutual growth, especially in the area of parts, materials and equipment, which offer superb opportunities for both countries to hone their skills and strengths.

Aside from cooperation on the national level, Danagher highlighted the importance of corporate and people-to-people partnerships, not only among conglomerates and big business, but also between small and medium-sized enterprises between countries. Also, Kim said there’s a growing need for enhanced coordination between public agencies to reach the greater society through soft power like sports diplomacy and culture as a way to gain more exposure internationally.

Global initiatives like the UN Global Compact regarding company commitments to implement universal sustainability principles, as well as RE100, which aims to achieve 100 percent renewable energy, are gaining traction in the international community. All of the ambassadors shared consensus on how Korean companies—now prominent players in the global market—need to put in more efforts to align with and adopt these initiatives to take another leap forward.

Kim emphasized the importance of fostering diversity and supporting international companies that would be considered minorities in major industries in Korea. He also said the growing role of hydrogen around the world would offer opportunities for the country to rise as a leader in this sector and match the global goals for clean energy.

Danagher mentioned that he has noticed Korean companies being ever more attentive to diversity and ESG initiatives, which points to the fact that in terms of leadership, everything is already understood. He said Korea is a much more environmentally conscious country than it was when he was here 30 years ago, and that the country is on the right path to exercising its leadership for the broader community through more internal advocacy.