5 foreign firms pledge $940 million in investments in Korea
Prime Minister Han Duck-soo delivers a congratulatory speech during the Invest KOREA Summit 2023 at BEXCO in Busan, Tuesday. Yonhap
BUSAN — Five foreign companies from the U.S., Japan, France, Spain and Thailand have agreed to invest a combined $940 million in Korea’s advanced technology sectors, the industry ministry said Tuesday.
The large-scale investment pledge was made at the Invest KOREA Summit 2023, Korea’s largest investment promotion event. It was the first time the event was held at the southern port city since it started as Foreign Investment Week in 2006.
The ministry said their investments are expected to contribute to improving Korea’s industrial competitiveness and creating new jobs.
Thailand’s B.Grimm Power and Spain’s Ocean Winds committed to building offshore wind farms in Korea, while the former also plans to establish a new factory to produce turbines and other components. America’s Hines will build a quantum computing facility in Busan.
France’s Renault, which has produced automobiles in Busan, promised to convert the production line for its internal combustion engine vehicles to produce hybrid cars. Japan’s TOK Advanced Materials is pushing ahead with the construction of a production facility for photoresists used in semiconductors.
Their agreements on investments were made ahead of the Invest KOREA Conference, the main event of the three-day summit.
Prime Minister Han Duck-soo said in his congratulatory speech that the latest foreign investments will accelerate the eco-friendly transformation of Korea’s industrial structure, allowing the nation’s high-tech industries to grow further.
"We defined obstacles to investments as 'killer regulations,' which should be abolished," Han said. "We will also enhance tax benefits and incentives for investments."
As a co-chair of the bid committee, he also sought support for Busan's efforts, so that Korea's experience of achieving the "Miracle on the Han River" can be shared with the whole world.
Minister of Trade, Industry and Energy Bang Moon-kyu detailed the government’s plan to foster the country’s high-tech sectors.
"We will enhance cash grants for foreign investments," Bang said in his opening speech. "We will also provide full support to R&D by global enterprises here."
Prime Minister Han Duck-soo, front row third from left, Minister of Trade, Industry and Energy Bang Moon-kyu, front row second from left, and Busan Mayor Park Heong-joon, front row fourth from left, pose at the promotional booth for Busan's World Expo bid, along with foreign investors participating in the Invest KOREA Summit 2023 at BEXCO in Busan, Tuesday. Yonhap
Busan Mayor Park Heong-joon, who suggested the event be hosted by the coastal city instead of Seoul, asked global investors to support Korea’s second-largest city’s bid to host the World Expo 2030.
"Our bid itself allowed Busan to grow into a global business hub," Park said in his welcoming remarks. "We will support the growth of businesses by offering them unprecedented incentives and by reforming regulations."
The speakers also visited an exhibition pavilion for Busan’s bid during the Invest KOREA Summit, to encourage the city’s efforts along with global businesspeople and other municipal governments.
At the booths of domestic semiconductor startup Rebellions, the Ulsan Free Economic Zone (FEZ) Authority and the Gwangju FEZ Authority, the prime minister praised them for contributing to the Korean economy.
After their speeches, Applied Materials Chief Technology Officer Omkaram Nalamasu unveiled the semiconductor equipment company’s plan to continue investments in its manufacturing facility and startups in Korea.
Invest KOREA Commissioner Kim Tae-hyung introduced Korea’s business-friendly investment environment, saying one of the world’s poorest countries grew to rank among the world’s top 10 economies in just seven decades.
Executives from Samsung Electronics, Doosan Enerbility and multiple foreign companies investing in Korea talked about why Korea is an attractive investment destination.
Participants in the Invest KOREA Summit 2023 look around the promotional booth for Busan's bid to host the World Expo 2030 at BEXCO in Busan, Tuesday. Courtesy of Korea Trade-Investment Promotion Agency
Municipalities seek foreign investments
Before the conference, municipal governments and local FEZ authorities made efforts to attract foreign investors at the Invest KOREA Summit. Municipalities also held town hall meetings to introduce their investment environments.
As foreign investors and their interpreters were busy touring the booths of municipalities to find the region most suitable for their business, various languages were heard at the exhibition hall and tables were placed for in-depth consultations.
Some investors visited the promotional booth for Busan’s Expo bid and the Korea Tourism Organization’s K-Culture booth which offered various activities for the entertainment of those in attendance, including traditional games and opportunities to wear traditional costumes.
On Wednesday, the trade ministry and the Korea Trade-Investment and Promotion Agency (KOTRA) will hold a startup conference at the event venue, to introduce the latest trends of investments in startups here and overseas.
A job fair will also be held at the venue for young Koreans seeking jobs at foreign firms. In addition, officials of the embassies of the U.S., India and Vietnam, as well as the Polish Investment and Trade Agency, will discuss investment strategies after the supply chain reshuffle.