Koo courts US investors with Korea’s manufacturing, AI edge

Finance chief pledges market reforms, equal treatment as Seoul seeks deeper strategic cooperation

By Choi Ji-won, The Korea Herald - Deputy Prime Minister and Finance Minister Koo Yun-cheol laid out Korea's growth strategy for US business leaders in Seoul Wednesday, pitching the country's manufacturing and technology base as an opportunity for deeper investment and artificial intelligence cooperation while pledging continued financial-market reforms.

The luncheon event, hosted by the American Chamber of Commerce in Korea, brought together about 150 government officials and executives from Korean and international companies. It followed a financial sector policy report that AmCham submitted to the government earlier this year and marked the latest round of policy dialogue between the government and foreign businesses operating in Korea.

"Any company that invests in Korea is a Korean company," Koo said, thanking AmCham members for their investment and job creation over the past seven decades.

Koo also reiterated the government's "3-4-5 vision" of raising Korea's potential growth rate to 3 percent, becoming one of the world's four largest exporters and lifting per capita income to $50,000, with semiconductors, AI data centers and physical AI at the center of its growth strategy.

He also highlighted ongoing capital and foreign exchange market reforms aimed at improving market accessibility for global investors.

On foreign exchange, Koo reiterated plans announced in July to internationalize the won, following the transition to 24-hour foreign exchange trading on July 6 and ahead of the launch of an offshore won settlement system in January.

He said the government had "actively reflected" recommendations in AmCham's financial hub report, including a request to raise reporting thresholds for foreign currency borrowing by foreign bank branches and limits on corporate cash pooling from $50 million to at least $100 million. The changes were largely outlined in the government's July roadmap.

AmCham Chairman and CEO James Kim said the group heard a consistent message during meetings with US officials in Washington last month that the next phase of Korea-US economic ties should focus on "tangible investment in strategic sectors, deeper technology cooperation and greater regulatory alignment," particularly in the digital economy.

Koo placed particular emphasis on artificial intelligence, arguing that Korea could gain an edge as competition shifts toward physical AI by combining US strengths in software with Korea's manufacturing base.

"The US is the world's leader in AI-related software and LLMs (large language models)," Koo said. "For that technology to be applied in the real world, it needs to be combined with manufacturing capabilities."

He cited shipbuilding, steel and petrochemicals as industries where such cooperation could generate greater value, describing the US as Korea's most important partner in the AI transition.

The discussion also turned to implementation of the $350 billion Korea-US strategic investment framework. Koo said talks with Washington were ongoing, with energy emerging as a major area of interest alongside shipbuilding, biotechnology, critical minerals and artificial intelligence.

Koo said Seoul was working with Washington to identify, as quickly as possible, projects that could benefit both countries, while urging AmCham members to propose commercially viable projects for bilateral cooperation.

"Korea is a land of opportunity," Koo said, adding that the government would work to ensure foreign companies are treated equally and improve the business environment for companies seeking to use Korea as a gateway and test bed for global markets.

Source: https://www.koreaherald.com/article/10845549?ref=naver