Sam Cheong, managing director and head of United Overseas Bank’s Group Foreign Direct Investment Advisory, speaks in an interview with Yonhap News Agency in Seoul on March 25, 2025. (Image courtesy of Yonhap)
SEOUL, March 27 (Korea Bizwire) – South Korea’s advanced technologies in semiconductors, artificial intelligence (AI) and other key industries will serve as a chance for the country to attract more foreign direct investment (FDI), a senior official from the Singapore-based United Overseas Bank (UOB) has said, emphasizing that FDI would be a useful tool for South Korea and its companies to achieve growth amid uncertainties.
Sam Cheong, managing director and head of UOB’s Group Foreign Direct Investment Advisory, made the assessment in an interview with Yonhap News Agency in Seoul on Tuesday, which coincided with the bank’s launch of an FDI advisory office in the capital city.
“South Korea definitely is in the forefront of technologies. I think it’s very strong in semiconductors and logistics. Companies from different countries will see Korea’s long-term potentials that support the economic growth in all these high-tech sectors,” the official said.
“I guess the recent surge in the AI semiconductors presents very unique opportunities for Korea in attracting more FDI,” he said, noting that the fields drawing keen attention from foreign investors also include data centers, hospitality and commercial buildings.
In 2024, FDI pledges to South Korea rose 5.7 percent from a year earlier to a record high of US$34.5 billion, led by a marked increase in investment in the manufacturing sector, according to Seoul government data.
In order to make South Korea more attractive to investors, it is advisable to create an environment where companies can easily enter the market and start businesses, as well as to enhance policy coordination with other nations by forging strategic partnership agreements, Cheong said.
“Promoting the strength of the country is also very important. I would say that investors are very familiar with Korea in terms of its technology and AI capabilities. I think such things will continue to be key attractions for FDI in the Korean market,” he added.
Cheong noted that an increasing number of South Korean firms are seeking to expand further into the Association of Southeast Asian Nations (ASEAN) and other overseas markets, which is a crucial development strategy given the changing global economic and business landscape.
“South Korea’s economic growth per year is around 2 percent. But when the companies expand to ASEAN, they are immediately entering a market that’s growing twice the rate of Korea, an economy that is going to be the fourth largest in the world, plus a population of more than 670 million,” Cheong said.
South Korean National Assembly Speaker Woo Won-shik (seated, C) and ambassadors of the Association of Southeast Asian Nations to South Korea pose for a photo during their luncheon meeting at the parliamentary building in Seoul, in this Jan. 15, 2025, file photo. (Image courtesy of Yonhap)
“The supply chain shift itself demands Korean companies to reconfigure their supply chains in the region and also globally,” he added. “The K-wave itself has also elevated the Korean brand equity in ASEAN, such as cosmetics, food and athleisure brands.”
Areas of focus for corporate overseas investment also include the manufacturing field and the renewable energy sector in accordance with ASEAN’s net-zero goals, according to the official.
South Korea is facing multiple economic challenges stemming from domestic political chaos and U.S. President Donald Trump’s sweeping tariff plan, among other factors.
The Bank of Korea (BOK) has forecast the economy to grow 1.5 percent in 2025, slowing from last year’s 2 percent expansion.
“In the longer term, we are positive that Korea will continue to grow with its own strength. As I mentioned, you are in the forefront of all this technology advancement and development. So I think that is something that makes us optimistic,” he said.
“Any such tariffs will impact everybody, and ultimately, they will impact consumers,” Cheong said.
“Countries should be promoting multilateralism and the openness of their economies so that there will be more trade and investment. They will be good in terms of creating more employment, quality jobs for the people. I think that should be the focus at this point.”
UOB opened an FDI advisory center in Seoul on Wednesday to support South Korean and ASEAN firms seeking to invest in broader regional markets. It marked the bank’s 11th such center across Asia.
(Yonhap)
