Korea ranked 2nd in a recent survey conducted by KOTRA on seven Asian countries to find the most attractive foreign investment destination. The survey was conducted through KOTRA’s 42 overseas branches by local corporations, and consisted of 10 sections and 28 subsections on areas including market size, labor costs and stability.

The survey, answered by 243 foreign corporations in 21 countries, revealed that Korea ranked 2nd overall after Singapore, followed by Hong Kong, Japan, Taiwan, China and Malaysia. Korea ranked 1st in terms of social infrastructure (transportation, logistics, telecommunications and water supply), and 2nd for market competitiveness, R&D and innovation. Overall, Korea was seen as an ideal country in which to invest.

Singapore, which ranked 1st overall, was highly ranked in almost all sections, making it the most attractive investment destination. Hong Kong ranked 1st in finance and taxation, and Japan ranked 1st in R&D and innovation.

China was unrivaled in terms of market size, growth potential and human resources, but remained at the bottom rank in terms of finance, living conditions and political & geopolitical conditions.

Looking at subsections, Korea ranked 1st in areas including telecommunication, electricity & water supply, R&D, government support of innovation, and ideal location, and 2nd in growth potential, manpower, technological maturity, medical service and more. However, it came in 5th for geopolitical risks and 4th for sociopolitical stability, education and transparency in administration.

It is notable that overseas corporations see Korea as having an ideal business location, a sound free trade agreement network and easy access to Japan and China. The fact that Korea ranked 1st for government support in R&D and innovation reflects the need to use its cutting edge telecommunications technology to attract overseas investment. Survey participants also said Korea will have to make an extra effort to create a more investor-friendly environment in the long run.

“Usually, foreign investors consider two to three Asian countries when deciding where to invest, which makes the process very competitive. We will keep monitoring the investment conditions of our Asian counterparts while trying to make the most of our strengths to win the game,” said Han Kiwon, Commissioner of Invest Korea.

Forty-seven percent of the 243 foreign corporations that took part in the survey had invested in Korea, 24 percent had not and 29 percent are considering investing in Korea in the future.