President Yoon Encourages Foreign Investment with More Incentives and Eased Regulations

In efforts to cultivate a more attractive environment for investors in South Korea, President Yoon Suk Yeol announced on Wednesday plans to ease regulatory burdens and amplify incentives for foreign-invested companies. By providing a more appealing environment, Yoon aims to stimulate economic growth and reaffirm the country's commitment to being a premier investment destination.

Enhancing the Investment Landscape

During a luncheon meeting with representatives from foreign-invested enterprises, Yoon communicated the government's resolve to adjust policies and regulations to meet, or even surpass, international standards. 'We should spare no efforts to provide various tax reliefs and other forms of financial support to you,' he stated, indicating a strong emphasis on competitive advantages for foreign investment.

Fulfilling Economic Contributions

Yoon also mentioned the significant economic contributions made by the foreign-invested enterprises to the South Korean economy, including the provision of high-quality jobs and notable export figures. Out of recognition for these contributions, Yoon expressed that it is now the government's turn to 'pay back' by offering these new incentives.

Commitment to Growth

The positive trend in foreign direct investment (FDI) reinforces Yoon's commitment. South Korea saw record numbers in 2023, with an all-time high annual inbound FDI commitment of $32.72 billion and a disbursed FDI reaching $18.79 billion. This growth is particularly noteworthy as it contrasted a global decrease in FDI.

Incentives and Recognition

The rise in investment stemmed from increased commitments from China, Hong Kong, and Taiwan, despite dips in investment from the United States, European Union, and Japan. Present regulations classify any company with foreign voting rights exceeding 10% from a 100 million won investment as a foreign-invested enterprise. These enterprises have historically benefited from a range of tax incentives and exemptions.

Investment, Incentives, Regulations