South Korea Seeks Foreign Investment to Boost Growth, Semiconductors and Defense

Koo Yun-cheol, South Korea’s deputy prime minister and minister of economy and finance, spoke in Tokyo on March 13 to global investors at a Korea Economic Investment briefing organized by Bloomberg Tokyo. The event took place during his participation in the 10th Korea–Japan Financial Ministers’ Meeting.

In a keynote address, Koo underscored Korea’s competitiveness in core industries such as semiconductors, nuclear power, shipbuilding, and defense. He said the government will pursue a steady capital-market activation policy aimed at boosting potential growth and expanding foreign investors’ access to Korean markets, adding that “now is the moment to pay attention to the Korean economy.”

Koo’s remarks were echoed by the Ministry of Economy and Finance’s International Finance Bureau, which hosted the investor presentation. Officials highlighted recent momentum in Korea’s economy, including exports climbing for nine consecutive months to record highs, a return to growth after the second half of last year, and stability in unemployment and consumer prices. They also noted that government debt levels and external liabilities remained manageable.

Beyond traditional exporters, the ministry pointed to ongoing overseas orders in shipbuilding, defense, and nuclear power as growth drivers. The briefing also emphasized dynamic services and cultural sectors, noting inbound tourism reached a record 18.93 million visitors last year and signaling that Korea’s economy is broadening its industrial portfolio through soft-power industries such as content and beauty.

Policy measures to attract more foreign investment were outlined, including a target to elevate Korea’s standing in semiconductor leadership and defense, and concrete steps to support investment, such as targeted fiscal and tax incentives, financial backing, and regulatory improvements. The government also described plans to strengthen investment access by expanding foreign-exchange market access to 24 hours a day and building offshore won-settlement infrastructure, along with a move toward integrated treasury trading accounts.

During a question-and-answer session, foreign investors inquired about Korea’s foreign-exchange regime, government bond markets, and related policies. Officials reaffirmed the government’s commitment to ongoing regulatory reforms aimed at making the capital market more investor-friendly and addressing obstacles to foreign investment.

Koo closed by noting improvements in Korea–Japan relations and expressing hope that the evolving stance would translate into tangible economic and financial gains for both countries. The summit-level discussions and investor outreach signal Seoul’s intent to align macro policy with international capital markets and to reinforce Korea’s role in global supply chains, including the semiconductor, energy, and defense sectors that matter to U.S. tech firms and security interests.