"Resolving Korean Regulations Is Key to Strengthening Korea-U.S. Cooperation"... Unified Voice from Government and Industry

With the Asia-Pacific Economic Cooperation (APEC) Summit set to take place in Korea this October, calls have been made for Korea to improve its regulatory environment. Given the increased volatility under a potential second Trump administration, there is a consensus that regulatory innovation is needed to attract investment.

At the "2025 Domestic Business Environment Seminar" hosted by the American Chamber of Commerce in Korea (AMCHAM) on the morning of the 29th at Conrad Seoul Hotel, the seminar was held under the theme "Creating a Regulatory Environment for Sustainable Trade." This event was organized to explore ways to improve Korea's regulatory environment and boost investment ahead of the APEC Summit scheduled for October in Korea. Attendees included Kim Wonyi, a lawmaker from the Democratic Party of Korea and secretary of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee; Chung Ingyeo, Deputy Minister for Trade at the Ministry of Trade, Industry and Energy; Joy Sakurai, Deputy Chief of Mission at the U.S. Embassy in Korea; and Park Iljun, Vice Chairman of the Korea Chamber of Commerce and Industry, along with other government and industry representatives.

James Kim, Chairman and CEO of AMCHAM, stated in his opening remarks, "Today marks the 100th day of President Trump's term and 35 days before the Korean presidential election, making this a crucial time for the economic partnership between Korea and the United States to further develop." He added, "To continue strengthening cooperation between the two countries, it is more important than ever to address Korea's unique regulatory issues and to create a more sustainable and transparent trade environment."

James Kim, Chairman and CEO of the American Chamber of Commerce in Korea (AMCHAM), is delivering a congratulatory speech at the '2025 Domestic Business Environment Seminar' held on the morning of the 29th at the Conrad Seoul Hotel. Photo by Park Juni

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U.S. President Donald Trump has recently continued to mention the regulatory environments of other countries. On the 24th, during the '2+2' Financial and Trade Ministers' Meeting between the Korean and U.S. governments, the U.S. side also raised Korea's non-tariff barriers, specifically digital regulations, as an agenda item for discussion.

According to AMCHAM's recently published "2025 Domestic Business Environment Insight Report," 50% of responding companies rated Korea's business environment as "below average." This figure is double that of the previous year. Additionally, 57% of responding companies stated that government policies had a negative impact on their business activities.

Kim further pointed out, "There is a consensus that Korea's unique regulations remain the most critical area for reform if Korea is to emerge as a regional headquarters hub for global companies." He noted, "Singapore is home to 5,000 headquarters, Hong Kong has 1,400, but Korea has fewer than 100."

In response, Deputy Chief of Mission Joy Sakurai also stated, "Regulations that block market access for U.S. companies entering Korea must be eliminated."

Deputy Minister Chung said, "Last year, Korea achieved a record high in attracting foreign direct investment since statistics began in 1962, and the strong trend continued in the first quarter of this year." He added, "These are indicators that the global investment environment remains attractive." He also pledged to: strengthen external incentives such as expanding cash grants; promote the establishment of R&D centers by global key companies' regional headquarters; improve the investment environment and ease unnecessary regulations; and analyze and improve non-tariff measures.

He continued, "The APEC Summit to be held in Gyeongju in October will be an important stage that draws global attention," and added, "As the host country of the APEC Trade Ministers' Meeting, the Ministry of Trade, Industry and Energy will actively work to uphold a free and fair trade system, and will do its utmost to promote regulatory innovation and improve the business environment to enhance Korea's investment appeal."

Vice Chairman Park Iljun stated, "The Korea Chamber of Commerce and Industry will continue to work closely with AMCHAM to promote exchanges between Korean and U.S. companies and to do our best to create a predictable and consistent investment environment." He added, "The APEC Summit to be held in Gyeongju this October will be a very meaningful milestone for the Korean economy."

Sachin Sapute, President of Novelis Asia, is giving a presentation at the "2025 Domestic Business Environment Seminar" held on the morning of the 29th at Conrad Seoul Hotel. Photo by Park Juni

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During the subsequent keynote session, representatives of major AMCHAM member companies emphasized the need for government support. Sachin Sapute, President of Novelis Asia, stated that sustainability, partnership, and economic resilience are key to expanding long-term investment in Korea. He said, "As a global leader in aluminum recycling, Novelis is contributing to Korea's circular economy through ongoing investment and technological innovation," and added, "We hope the government will take the lead in promoting and supporting policies for efficient resource circulation."

Van Hol, President of Corning Korea, highlighted Korea's role as a strategic hub of innovation connecting the world, stating, "Through close cooperation and support from leading Korean partners and the Korean government, Corning has not only developed innovative products and process technologies but has also played a key role in supporting Korea's competitiveness in the global market."

The seminar concluded with a panel discussion moderated by Jung Jieun, CEO of KODIT. The panel discussion focused on practical and future-oriented strategies based on public-private cooperation for regulatory innovation, expanding sustainable investment, and strengthening global competitiveness.

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