Last year, 44% of Korea’s foreign direct investment went to the United States… Impact of investments in semiconductors and batteries.

Report on the martial arts… Korean companies rank 5th in the contribution to the external exports to the US among 26 major countries
Korean companies entering the US create ‘high-quality jobs’ despite smaller employment scale and higher wages
If investment in the US increases, exports to the US of raw materials and intermediate goods also increase, creating a “win-win” situation,
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Containers piled up at Sinseondae Port, Nam-gu, Busan
[Newsis photo],
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, ‘(Seoul=Yonhap News) By Kim Dong-kyu = Last year, the proportion of Korea’s overseas direct investment (ODI) accounted for by the US set a record high since 1988, at 43.7%.’,
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, ‘ This is attributed to Korean companies increasing their presence in the US beyond reshoring (return of overseas ventures to the home country) and actively attracting foreign investments, especially in the semiconductor and core companies, according to the analysis.’,
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, ” According to the report ‘Current Status of Korean Companies’ Investments in the US and Economic Contribution’ published by the Korea International Trade Association’s Institute of International Trade and Business, Korea’s ODI last year totaled $63.4 billion, of which 43.7% ($27.7 billion) was directed to the US.”,
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, ‘ This was followed by Cayman Islands at 9.7% ($6.2 billion), Luxembourg (7.8%/$5.0 billion), Canada (5.7%/$3.6 billion), Vietnam (4.2%/$2.6 billion), Indonesia (3.3%/$2.1 billion), and China (2.9%/$1.9 billion).’,
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, ‘ China, once the largest direct investment country accounting for about 40% of Korean ODI in the early 2000s, now ranks 7th and has been surpassed by the US.’,
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Share of foreign direct investment by country and trend by country in 2023
[Provided by the Korea International Trade Association. Redistribution and DB Prohibited],
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, ‘The increase in ODI to the US last year is interpreted as a response by Korean companies to the active recruitment of advanced manufacturing facilities by the US through the Chips Act and the Inflation Reduction Act, offering subsidies, tax incentives, etc.’,
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, ‘ For example, Samsung Electronics is investing in a semiconductor manufacturing plant in Texas, and LG Energy Solution is constructing a large-scale investment in battery production facilities in Arizona, leading to a sharp increase in Korean companies’ investments in the US.’,
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, ‘ As a result, last year, the proportion of Korean ODI to the US accounted for by memory chips and capacitors was 99.2%, and 70.1%, respectively, reaching record highs.’,
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, ‘ From the US perspective, the share of Korean companies in cumulative foreign direct investment (FDI) inflows was around 1% before 2010, but it rose to around 2.3% in 2020-2022.’,
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, ‘ As of last month, there were a total of 2,432 Korean company establishments in the US, with the distribution by industry being 26.8% in manufacturing, 21.6% in wholesale, and 16.8% each in service and retail sectors.’,
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, ‘ By state, California had the highest number with 24.7% (600 establishments), followed by Texas (11.1%), New York (7.9%), and New Jersey (7.6%), showing a significant presence of Korean companies.’,
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, ‘ As of 2021, the ratio of Korean companies’ asset size to their contribution to US economic growth (GDP) was $10.1 per $100, higher than the overall average of foreign companies ($6.8), reflecting a high level of contribution.’,
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, ‘ Korean companies’ contribution to US external exports per $1,000 in asset size was $43.0, significantly surpassing the average of $24.3 among 26 major countries, ranking 5th.’,
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, ‘ Although the share of employment creation by Korean companies in the US was low at 1.1%, compared to the UK (15.4%), Japan (12.1%), Germany (11.6%), the average annual salary per employee for Korean companies was $104,000, higher than the overall average of $87,000.’,
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Annual salary per employee for major companies in the US
[Provided by the Korea International Trade Association. Redistribution and DB Prohibited],
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, ‘The report evaluates that Korean companies are contributing to the creation of high-quality jobs in the US, especially focusing on high value-added industries.’,
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, ‘ Korean companies’ entry into the US is seen as positive for Korea as well.’,
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, ‘ Empirical analysis shows that when Korean ODI to the US increases by 10%, US exports increase by 0.202%, indicating that the export-inducing effect is greater than the export substitution effect. This is because Korean companies source a significant portion of raw materials and intermediate goods from Korea.’,
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, ‘ In fact, as of 2022, the share of Korean sourcing by Korean local subsidiaries in the US was 61.4%, significantly higher than the average share of sourcing from Korea for foreign ventures, which was 43.4%.’,
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, ‘ Do Won-bin, Senior Researcher at the Korea Trade Association, emphasized the positive effects of Korean investments in the US on fostering advanced industries emphasized by President Joe Biden and strengthening manufacturing and resolving trade imbalances highlighted by former President Donald Trump, saying that it is necessary to use Korea’s contribution to the US economy as a leverage to ease US trade pressures.’,
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