KOTRA "18% of South Korea's Export Value Comes from Foreign-Invested Companies... Export Contribution Should Be Noted"

Survey of 14,000 Foreign-Invested Companies in Korea
'39% Had Export Performance Last Year'

[Asia Economy Reporter Kim Ji-hee] A survey revealed that foreign-invested companies accounted for 18.5% of South Korea's total exports last year. Given the significant export contribution of foreign-invested companies, it is analyzed that increasing exports through attracting foreign investment is necessary.

KOTRA announced on the 11th that, based on a survey of 14,000 domestic foreign-invested companies, 5,800 companies, accounting for 39%, had export performance last year. The export value of foreign-invested companies last year was $100.3 billion, representing 18.5% of the total export value of $542.2 billion. This year, until July, 5,400 companies exported $50.8 billion, accounting for 17.9% of South Korea's total export value of $283.4 billion.

KOTRA pointed out, "Considering the restructuring of the global economic system accelerated by COVID-19, it is fundamentally necessary to focus on the export contribution rather than just the export amount of foreign-invested companies."

Accordingly, KOTRA seeks to expand exports through cooperation between trade promotion and investment attraction sectors. The strategy is to increase exports by attracting foreign investment and create a virtuous cycle where increased exports lead to further investment. They plan to attract more foreign companies by actively supporting companies that have chosen South Korea as a hub in the process of global value chain (GVC) restructuring.

On the 8th, KOTRA held a 'Working-level Meeting for Foreign-invested Companies' COVID-19 Response and Trade and Investment Revitalization' with foreign chambers of commerce in Korea at its headquarters in Yeomgok-dong, Seoul. Various government support programs to help foreign-invested companies overcome COVID-19 were introduced, and KOTRA's export-linked support programs available to small and medium-sized foreign-invested companies were also guided.

Kwon Pyung-oh, President of KOTRA, stated, "With the decrease in global trade volume and the rise of protectionism after COVID-19, export competition between countries is expected to intensify further. We will actively support foreign-invested companies to utilize the restructuring of the global value chain as a new opportunity for our exports."

This content was produced with the assistance of AI translation services.