Korea seeks balanced approach with Chinese investors

Korea aims for a balanced approach with Chinese investors at the 2023 Invest Korea Summit in Busan, offering administrative support and exploring business opportunities.

Busan Nurimaru APEC House [BUSAN METROPOLITAN CITY]

Korea will take a balanced approach with Chinese investors for ongoing and future businesses, according to Vice Trade Minister Jang Young-jin, who spoke at a press briefing to kick-start the 2023 Invest Korea Summit, taking place in Busan through Wednesday.

The summit, hosted by the Ministry of Trade, Industry and Energy and organized by Invest KOREA, part of the Korea Trade-Investment Promotion Agency (Kotra), will bring more than 250 foreign investors in semiconductors, electric vehicles, secondary batteries, and energy from over 30 countries to the southern port city to explore business opportunities in Korea.

The annual event is being held in Busan for the first time this year, instead of its usual host city of Seoul, to promote the southern port city’s bid for the 2030 World Expo, at the suggestion of Busan Mayor Park Heong-joon.

“Chinese investors are focusing investment to Korea especially in terms of secondary batteries,” Jang noted. “Our fundamental stance is that we will actively give administrative support to Chinese businesses, or any other foreign investors in that matter, so that they will have no problem doing business in Korea in terms of tax and cash credits,” Jang said at the press briefing for the summit hosted at Nurimaru APEC House in Busan on Monday.

Korea will also wisely navigate geoeconomic relations between the U.S. and China, according to Jang.

“It is true that the U.S. and China are locked in geopolitical tension regarding their national securities, but as the U.S. government had mentioned, [diplomatic relations] are not about decoupling, but de-risking,” he said.

“For instance, China has recently imposed export controls on graphite [a key material used to make EV batteries that Korea dominantly relies on] but Korea and China are closely communicating to resolve this issue so that it doesn’t affect Korea’s EV supply chain.”

Jang also mentioned the record-high foreign direct investment (FDI) pledges to Korea of $23.95 billion during the first nine months this year, a surge of 11.3 percent on year.

“Korea hopes to continue to strengthen FDI pledges, and hopefully so, through this summit,” Jang said.

The main event of the three-day summit includes the Invest Korea Conference which takes place on Tuesday afternoon, with this year’s theme being “accelerating a sustainable growth by driving innovation.”

Prime Minister Han Duck-soo, Busan Mayor Park, Trade Minister Bang Moon-kyu, 700 CEOs, executives and foreign investors will participate in the main conference.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]