Invest KOREA Summit confirms nation's status as global investment hub

Despite the declining foreign direct investment (FDI) in major countries in the wake of growing uncertainties about the global business environment, Korea attracted a record-high FDI of $24 billion during the first three quarters of this year, up 11.3 percent from a year earlier, according to the trade ministry, Thursday.

In particular, $17 billion worth of green-field investments, a 20 percent growth year-on-year, were made in high-tech sectors, such as semiconductors and rechargeable batteries, increasing the expectations about a stronger supply chain and greater job creation. A green-field investment is a type of FDI in which a parent company creates a subsidiary in a different country, building its operations from the ground up.

Such an achievement was the main topic of the Invest KOREA Summit 2023, which was held in Busan between Nov. 6 and 8 under the theme, “Bridging the World with Vibrant KOREA.”

Hosted by the Ministry of Trade, Industry and Energy and organized by the Korea Trade-Investment Promotion Agency (KOTRA), the event took place in Korea’s second-largest city, which seeks to host the World Expo 2030. It was the first time the event was held at the southeastern port city since it started as Foreign Investment Week in 2006.

Over 1,500 participants, including foreign investors, municipality officials, Korean businesspeople and foreign journalists, attended the event to learn how Korea was able to attract such a large amount of FDI.

On Nov. 7, Prime Minister Han Duck-soo and Industry Minister Bang Moon-kyu took part in the Invest KOREA Conference that attracted an audience of over 600.

Among foreign firms investing in Korea’s high-tech sectors, Umicore, Lam Research and Equinor delivered speeches at the conference regarding why the country is an attractive investment destination.

Belgium-headquartered Umicore, the world’s leading producer of cathode materials for rechargeable batteries, which established its Korean subsidiary in 1999, mentioned Korean people’s education level and their dedication to jobs, Korea’s accessibility to major importers and the government’s wholehearted support.

America’s Lam Research, the global leader in semiconductor equipment manufacturing, which entered the Korean market 34 years ago, recognized Korea for its large number of highly skilled and educated workers.

Norway’s Equinor, which leads the global floating offshore wind farm industry, said it believes that Korea will become the bridgehead for the Asian offshore wind power sector.

To spur the inflow of foreign investments in Korea, the government has carried out business-friendly policies, easing regulations and enhancing incentives. It also attributed the record-high FDI to President Yoon Suk Yeol’s economic diplomacy, citing $3 billion worth of reported investments at the time of his visits to the U.S. and Europe for summits.