AMCHAM Warns "Korea's Regulations Hampering Investment Amid Intensifying Competition"... Publishes 'Business Environment Insight Report'

The American Chamber of Commerce in Korea (AMCHAM Korea) has raised the need for regulatory reform to improve Korea's investment environment and strengthen its industrial competitiveness. As global competition to attract investment intensifies due to the restructuring of global supply chains and the proliferation of artificial intelligence (AI), AMCHAM Korea diagnosed that the transparency and predictability of regulations have emerged as key issues for the Korean economy.

AMCHAM Korea announced on the 29th that it has published the annual "2026 Domestic Business Environment Insight Report," which contains policy tasks aimed at strengthening Korea's investment environment and industrial competitiveness.

This year's report, in particular, presents policy directions necessary for Korea to maintain its competitiveness as a regional headquarters (RHQ) and innovation hub, amid intensifying competition among countries to attract investment due to the restructuring of global supply chains, the intensification of advanced industry competition, and the expansion of artificial intelligence (AI).

AMCHAM Korea emphasized that, in this environment, the transparency and predictability of regulations-as well as alignment with global standards-are key factors driving investment attraction and sustainable growth.

The American Chamber of Commerce in Korea (AmCham) announced on the 29th that it has published the annual "2026 Domestic Business Environment Insight Report," which contains policy tasks aimed at strengthening Korea's investment environment and industrial competitiveness. AmCham.

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James Kim, Chairman and CEO of AMCHAM Korea, stated, "Korea remains a stable and competitive market, but to maintain this competitiveness going forward, ensuring regulatory predictability and alignment with global standards is more important than ever." He added, "Earlier this year, in a meeting with President Lee Jaemyung, we also discussed the goal of expanding the number of regional headquarters in Korea from the current level of around 100 to 1,000 during his term."

He continued, "In this context, this year's report addresses the major regulatory challenges faced by American companies operating in Korea, as well as issues that can serve as non-tariff barriers. AMCHAM Korea will continue to work closely with the Korean government, including the newly launched Regulatory Rationalization Committee, to eliminate unnecessary regulatory gaps and help foster a more transparent, predictable, and globally aligned business environment."

This year's report covers a total of 75 key regulatory issues across 11 industries, an expansion compared to last year's 66 issues. It encompasses major sectors including aerospace and defense, agriculture, automotive, chemicals, digital economy, energy and environment, financial services, labor market, medical devices, pharmaceuticals, and tax policy.

In particular, a relatively large number of issues were identified in financial services (13), automotive (10), chemicals (10), pharmaceuticals (8), and digital economy (7), indicating that regulatory improvement tasks are concentrated in these sectors. Furthermore, this year's report aligns with the "National Trade Estimate Report on Foreign Trade Barriers (NTE)" by the U.S. Trade Representative (USTR) and the Korea-U.S. Joint Fact Sheet, reaffirming the need to address non-tariff barriers and enhance regulatory alignment.

The report pointed out that complex regulatory structures, lack of consistency, and discrepancies with global standards continue to burden business activities. In particular, overlapping regulations, frequent policy changes, and low predictability were analyzed as factors increasing uncertainty for companies in investment decision-making and overall business operations.

These challenges are becoming even more important in future industries such as artificial intelligence (AI) and digital infrastructure. The report stressed that data mobility, policy clarity, and accessibility to energy and infrastructure are crucial factors that determine innovation and the attraction of large-scale investment.

In addition, the report highlighted the need to strengthen the foundation for global capital inflows by enhancing labor market flexibility, improving legal and institutional predictability, and reforming the financial market system.

AMCHAM Korea plans to continue cooperating closely with the government and industry to advance policy discussions and actively support the implementation of the policy tasks outlined in the report. The full report is available on the AMCHAM Korea website.

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