How will Trade Minister Cheong In-kyo enhance foreign investment and support reshoring?
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Synopsis
In a significant announcement, Trade Minister Cheong In-kyo emphasizes the government's commitment to boosting foreign investments and assisting local firms in returning from abroad. This initiative aims to strengthen South Korea's industrial competitiveness amid global trade challenges. Discover the implications of this strategy and its potential impact on the economy.
Key Takeaways
- Government's commitment to attracting foreign investment.
- Support for reshoring companies to enhance competitiveness.
- Record FDI of US$32.57 billion in 2024.
- Resilience of FDI in the face of global uncertainties.
- Collaboration with the U.S. to address trade and security issues.
Seoul, April 28 (NationPress) Trade Minister Cheong In-kyo announced on Monday that the government is committed to making significant efforts to enhance foreign investment and facilitate the repatriation of domestic companies operating abroad.
Cheong expressed these views during a policy coordination meeting with local government representatives and officials from the Korea Trade-Investment Promotion Agency (KOTRA), as reported by the Ministry of Trade, Industry and Energy and covered by Yonhap news agency.
He stated, “Boosting foreign direct investment (FDI) and assisting reshoring companies are essential for improving national industrial competitiveness and rejuvenating regional economies, even amidst significant shifts in global trade dynamics,” said Cheong.
He further committed to ongoing policy support in close partnership with local governments and free economic zones. In 2024, South Korea achieved a remarkable milestone, attracting a record-setting US$32.57 billion in FDI, the highest since the record-keeping began in 1962, according to the ministry.
Despite the prevailing global uncertainties, the ministry noted that FDI has shown resilience this year, highlighting that South Korea secured $6.4 billion in commitments during the first quarter alone.
In related news, acting President Han Duck-soo remarked that South Korea’s trade and security challenges with the United States could be addressed in a “relatively non-conflicting manner,” according to an article in the British newspaper The Economist.
During an interview, Han discussed the “one-stop shop” negotiations that U.S. President Donald Trump has initiated with South Korea to concurrently tackle trade and security matters.
“Through collaborative negotiations with the United States, we can uncover mutually beneficial solutions,” Han was quoted as saying in the interview published on Sunday.
He emphasized that South Korea is confident that issues can be resolved in a “rather non-conflicting way.”
On trade, Han acknowledged that Trump’s tariffs on automotive and steel imports have been “incredibly challenging.” He also described the announcement—followed by a 90-day suspension—of a 25 percent “reciprocal” tariff on South Korea as “shock therapy.”
Han discussed potential collaboration with the U.S. on constructing a gas pipeline in Alaska and revitalizing the shipbuilding sector, indicating that the U.S. “should modify” its legal framework governing the industry.
He also pointed out opportunities to ease South Korea’s non-tariff barriers.
Point of View
It is essential to recognize that South Korea's proactive approach in fostering foreign investments and supporting local firms returning from abroad reflects a strategic alignment with national interests. This initiative not only aims to enhance industrial competitiveness but also seeks to address the broader economic challenges posed by global trade uncertainties.
NationPress
08/06/2025
Frequently Asked Questions
What are the main goals of Trade Minister Cheong In-kyo's announcement?
The primary goals are to attract more foreign investment and support the repatriation of local firms from overseas, enhancing national industrial competitiveness.
How much foreign direct investment did South Korea attract in 2024?
In 2024, South Korea attracted a record high of US$32.57 billion in foreign direct investment.
What does the government plan to do to support reshoring companies?
The government plans to provide ongoing policy support in collaboration with local governments and free economic zones to assist reshoring companies.
How has foreign direct investment performed amid global uncertainties?
Despite global uncertainties, foreign direct investment has shown resilience, with South Korea securing $6.4 billion in commitments in the first quarter of the year.
What challenges does President Han Duck-soo mention regarding U.S. trade relations?
President Han Duck-soo highlights the challenges posed by tariffs on automotive and steel imports and suggests that cooperative negotiations with the U.S. can lead to mutually beneficial solutions.
