S.Korea pledges steps to attract more foreign investment

South Korea will boost foreign investment in the country through increased incentives and deregulation, Finance Minister and Deputy Prime Minister Choo Kyung-ho said on March 8.

The government will strengthen ties with US investors, Choo said at a luncheon meeting in Seoul hosted by the American Chamber of Commerce in Korea (AMCHAM), the largest such foreign association in the country.

It is the first time that a deputy prime minister has joined an AMCHAM-hosted meeting with Korea-based US companies since former Deputy PM Yoo Il-ho attended in 2016.

The US continues to be the top investor in Korea, with $8.7 billion last year alone. Choo pledged Korea will make the country’s investment environment even more favorable to US companies and other foreign firms.

In a bid to attract foreign investment in Korea, the government will expand subsidies for global high-tech firms to be based in Korea and ease regulations for a better business climate, the finance minister said.

"The US-Korea partnership will continue to be mutually beneficial under the free trade agreement (FTA) with close communication," Choo said. He added the two countries will also address issues concerning US’ Inflation Reduction Act (IRA) and CHIPS and Science Act, which are expected to pressure Korea’s electric vehicles and semiconductor sectors, respectively.

The government will prioritize price stability for the time being, and once prices stabilize it will put more bearing on economic recovery, Choo said. It will also boost support for people in need amid the economic slowdown and thoroughly manage risks in the financial and foreign exchange markets, he added.

Write to Sungsu Bae at baebae@hankyung.com

Jihyun Kim edited this article.