Invest Korea's commissioner relays big hopes for foreign investment

Invest Korea's commissioner Kim Tae-hyung predicts that investors will be drawn to sectors like robotics, nuclear energy, and Hallyu, in addition to the country's well-established strengths like semiconductors and EV batteries.

Kim Tae-hyung, the commissioner of Invest Korea, speaks during an interview with the Korea JoongAng Daily at his office in Yangjae-dong of Seocho District, southern Seoul. [INVEST KOREA]

At the helm of a state-run agency tasked with promoting foreign investment, Kim Tae-hyung, the commissioner of Invest Korea, keenly follows the dynamic investment appetite and industry landscape surrounding Korea.

He wagers that more investors will be attracted to sectors in robotics, nuclear energy and Hallyu, on top of the country's traditional strengths like chips and electric vehicle (EV) batteries.

“Korea’s current strongest expertise lies in semiconductors, EV batteries, display, automobiles and bio,” Kim said in a recent interview with the Korea JoongAng Daily, held at the Korea Trade-Investment Promotion Agency (KOTRA) headquarters in Yangjae-dong of Seocho District, southern Seoul. “I heard that Korea’s robotics industry is among the best globally, but it’s an entirely different matter as to how a country formulates its position in the global robotics market.

“Another potential area for foreign investment is nuclear energy. At the 28th session of the United Nations Climate Change Conference [COP28] held in Abu Dhabi this year, 22 countries including the United States and Korea pledged to triple nuclear energy capacity by 2050 in order to achieve net-zero emissions, so investment into nuclear energy is expected to soar, as well as small modular reactors.”

Kim was appointed by KOTRA in January to take helm of Invest Korea. His term lasts for two years.

Kim received a bachelor’s degree in economics at Korea University and earned a master’s and Ph.D. in economics at the University of Washington. He’s served as a researcher, economist and a consultant in fields of international investment, global value chain, and international taxation at Korea Institute for International Economics Policy (KIEP), the U.S. Law and Economics Consulting Group (LECG) and Deloitte U.S. and Deloitte Korea.

Last month, Kim wrapped up Invest Korea’s biggest annual event of the year, Invest Korea Summit, hosted by the Ministry of Trade, Industry and Energy and organized by Invest Korea.

The summit celebrates its 18th anniversary this year, gathering more than 1,500 foreign investors, local governments and global media outlets to provide the ground base for networking and sharing new investment items.

As a result, five energy and automobile companies from Thailand, Spain and France pledged to invest a combined $940 million in Korea.

Foreign direct investment pledges to Korea also reached an all-time high of $23.95 billion during the January-September period — a surge of 11.3 percent on year, according to data from the Trade Ministry.

Kim says that the most crucial factor in closing a successful investment deal is none other than transparency.

“It seems obvious, but it's very difficult to achieve,” he said. “In order for everyone on the table to leave satisfied, there shouldn’t be any hiding or manipulation of data. Considering the progress and the pace of investment deals, when such things are discovered, it leads to doubts. Even before the involved parties start anything, things are bound to come apart. Therefore, under the premise that everyone provides accurate and reliable information, communication will go well, thus leading to a handshake. But if communication feels unreliable in any way, the deal is scrapped.”

Kim reckons that foreign investors are particularly interested in Korea’s supply chain in EV batteries and, what's more, Hallyu, or the Korean wave.

“Not only in major Korean companies such as SK On, LG Energy & Solution and Samsung SDI, there was also significant interest from foreign investors toward mid-sized companies in the battery supply chain,” Kim said. “When I asked them what the reason was, they explained that listed companies are already globally recognized and their stock prices have risen high enough, so they want to uncover potential from unlisted companies that are closely collaborating with the same major battery companies.

The commissioner is uncertain how investments in the Korean entertainment will play out, but he is confident that the global prospect over the sector has crossed the threshold of just pure fascination.

“Coming from my personal experience, for instance, I had the opportunity to visit Saudi Arabia for the first time in my life this year as I followed President Yoon Suk Yeol on his state visit to strengthen economic cooperation in October. A female immigration officer checked my passport and said annyeonghaseyo [hello in Korean] to me. I’ve also been to Paris, and I heard that there were hundreds of Korean restaurants within the city and that the fervor over Korean food was that great. I believe that such a positive impression of Korean culture will spill over into investment deals as well. As for direct investments, the only method that pops into my mind now is for foreign investors to buy up shares of entertainment companies, and I know that interest over such stocks is also great.”

Kim hopes Invest Korea Summit will continue to play a crucial role in attracting foreign investment — and that its influence will reach beyond that of just Korea.

“If I may indulge a bit more, I hope Kotra’s Invest Korea Summit becomes the leading investment attraction event not only in Korea, but in all of Asia,” he said. “It would be wonderful if our nation, through this summit, becomes a highly sought-after investment destination.”

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