Invest KOREA

S. Korea’s Q1 Growth Rate Ranks 1st Among Major Economies, Outpacing China and Indonesia According to Yonhap News, South Korea’s real Gross Domestic Product (GDP) growth rate for the first quarter of this year has been found to rank at the very top among major economies worldwide. According to the Bank of Korea's Economic Statistics System on the 12th, South Korea's GDP growth rate for the first quarter of this year stood at 1.694%, convincingly capturing the No. 1 spot among the 22 countries that have released their advanced estimates so far. It significantly outpaced Indonesia (1.367%) and China (1.3%), which have relatively maintained high growth trends. Only three countries experienced economic growth of 1% or higher in the first quarter. Finland recorded the fourth-highest growth rate at 0.861%, followed by Hungary (0.805%), Spain (0.614%), Estonia (0.581%), the United States (0.494%), Canada (0.4%), Germany (0.334%), Costa Rica (0.279%), Belgium (0.2%), Austria (0.197%), Italy (0.165%), the Czech Republic (0.153%), the Netherlands (0.051%), and Portugal (0.022%). France experienced a negative growth of -0.005%, while Sweden (-0.21%), Lithuania (-0.444%), and Mexico (-0.8%) also showed minus growth rates. Ireland (-2.014%) stepped backward by more than 2% in the first quarter alone. South Korea's growth rate in the fourth quarter of last year was limited to -0.161%, plunging to 38th out of 41 major countries included in the Bank of Korea's statistics, but its ranking has sharply rebounded entering this year. If South Korea defends its top position even after the remaining countries release their advanced estimates, it will mark the first time in 16 years since the first quarter of 2010 (2.343%) that the country ranks first in quarterly growth rate. The early 2010s was a period when global trade revived after the global financial crisis, and South Korea’s flagship exports, such as #semiconductors and #automobiles, rebounded rapidly. The extraordinary 'surprise growth' in the first quarter of this year was also thanks to exports, including semiconductors. First-quarter exports surged by 5.1%, driven by Information Technology (IT) items, and the net export (exports minus imports) contribution reached 1.1 percentage points (p). The two major semiconductor manufacturers, Samsung Electronics and SK hynix, led the growth by recording earning surprises amounting to KRW 57.2 trillion and KRW 37.6 trillion, respectively, in the first quarter. As the first-quarter growth rate was announced to be nearly double the forecast (0.9%) presented by the Bank of Korea last February, domestic and foreign institutions are racing to raise their own forecasts. On the previous day, the Korea Institute of Finance raised its growth outlook for this year by 0.7%p from the previous 2.1% to 2.8%. .... Copyrights Yonhap News. All Rights Reserved. Read the full article at: www.investkorea.org #InvestKOREA #FDI #Export #GDP #EconomicGrowth

National Tax Service Announces Major Tax Support Measures for Foreign-Invested Companies 🇰🇷💼 In a significant move to enhance South Korea’s investment climate, the National Tax Service (NTS), in collaboration with the Foreign Investment Ombudsman (KOTRA), hosted a landmark joint framework meeting with leadership from eight major foreign chambers of commerce (including AMCHAM Korea, European Chamber of Commerce in Korea (ECCK), AHK Korea (Korean-German Chamber of Commerce and Industry), and FKCCI French Korean Chamber of Commerce and Industry) on May 14, 2026. Aligned with the government's overarching vision to establish Korea as a premier global investment destination, the NTS unveiled concrete tax administrative support measures designed to reduce compliance burdens and incentivize local expansion. 🔍 Key Highlights for the Foreign Investment Community: ☑️Exemption from Tax Audits: Foreign-invested companies that actively expand domestic investments or increase youth employment will be granted exemptions from scheduled corporate tax audits, providing greater operational predictability. ☑️Dedicated Foreign Corporate Support Desks: To resolve tax-related grievances swiftly, specialized "Foreign Enterprise Dedicated Consultation Desks" will be established across regional tax offices, ensuring direct communication channels with tax authorities. ☑️Fast-Track R&D Tax Credit Pre-Ruling: A fast-track system will be introduced for R&D tax credit pre-rulings, prioritizing applications from foreign-invested firms to accelerate high-tech and innovative investments. ☑️Customized Corporate Tax Consulting: The NTS will expand its tailored tax credit and exemption consulting services to help enterprises proactively identify eligible tax benefits while mitigating potential underreporting risks. At Invest KOREA, we work closely with the Foreign Investment Ombudsman to ensure our global partners can seamlessly leverage these newly introduced administrative benefits. Note: This post is a translation and adaptation by Invest KOREA, based on an official press release from the National Tax Service: https://lnkd.in/gTzrnhuh #InvestKOREA #NTS #FDI #TaxPolicy #ForeignInvestment #BusinessInKorea #TaxIncentives #EconomicGrowth #GlobalTrade #CorporateTax #KOTRA

Global Minimum Tax Seminar for Foreign-Invested Companies As the initial filing for the 2024 fiscal year Global Minimum Tax commences on May 1, 2026, the Office of the Foreign Investment Ombudsman, in collaboration with the National Tax Service (NTS), is co-hosting a specialized briefing session. This session is designed to provide comprehensive guidance and support for foreign-invested companies, ensuring a seamless and compliant filing and payment process. 📅 Date & Time: Tuesday, May 26, 2026 | 14:00 – 16:00 📍 Venue: International Conference Hall (B1), KOTRA Headquarters (13 Heolleung-ro, Seocho-gu, Seoul) 👥 Target Audience: Tax representatives and working-level personnel of companies subject to the Global Minimum Tax. 📝 How to Register: To attend the session, please complete the registration form and submit it to the Office of the Foreign Investment Ombudsman via email at ombudsman@kotra.or.kr by Tuesday, May 19, 2026. Invest KOREA and the Ombudsman remain committed to addressing the practical challenges faced by the foreign investment community and fostering a stable tax environment in Korea. #InvestKOREA #Ombudsman #GlobalMinimumTax #TaxCompliance #FDI #KOTRA #NTS #ForeignInvestment #BusinessInKorea #TaxReporting

GM Korea Reaffirms Commitment to S. Korean Operations; Middle East Conflict Poses No Disruption According to Yonhap News, GM Korea Co., the South Korean unit of General Motors Co. (GM), has reaffirmed its commitment to maintaining operations, dismissing persistent market rumors of a potential exit, while also noting that ongoing geopolitical tensions in the Middle East have not disrupted its production or supply chains. The reassurance came during a media tour of GM Korea's production and export operations in Changwon, about 300 kilometers southeast of Seoul, earlier this week, where company executives highlighted stable production and continued investment in local facilities. Asif Khatri, vice president of manufacturing for GM's international operations, noted speculation about a withdrawal from South Korea is unfounded, stressing that the company's plants in the country are operating at full capacity. "I can tell you that that's false, or we can go do something about it," Khatri said during a press conference held at GM Korea's Changwon plant Tuesday. "We have got five facilities across Korea. All of them are operating at max capacity. We can't build enough right now." The comments come as GM has recently doubled down on its Korean operations, announcing a US$600 million investment plan in March to upgrade production facilities and reinforce the country's role as a global hub for GM's small sport utility vehicles (SUVs). ... GM Korea exports approximately 410,000 units of its locally manufactured vehicles annually, with about 85 percent of those shipped to the United States. Khatri emphasized that GM's continued investments demonstrate its long-term commitment to Korea. "The investment comes in. We are putting a brand new press line of about 5,200 tons," he said, adding, "I'm here to tell you that we are here to stay." Despite escalating tensions in the Middle East due to the ongoing U.S.-Iran conflict, GM Korea has not experienced any direct negative impact on production or parts procurement, according to the company. "So far, we have not seen any negative impact, and there hasn't been any disruption in our manufacturing operations," Khatri said. "We continue to produce as we scheduled and as we planned." ... Copyrights Yonhap News. All Rights Reserved. Please note that certain sections of the full text have been omitted for length. Explore more investment opportunities and economic trends in Korea: www.investkorea.org #InvestKOREA #FDI #Automotive #GM #GMKorea

KOSPI Opens at Fresh High on Chip Rally Amid Woes Over Breakdown of Peace Deal According to Yonhap News, South Korean stocks opened at a fresh record high Monday, easily breaching the 7,700-point mark, boosted by an extended rally of blue chip semiconductor shares, despite woes over the U.S.-Iran peace deal at the risk of rupture. The benchmark Korea Composite Stock Price Index (KOSPI) opened at a fresh high of 7,775.31, up 277.31 points, or 3.7 percent. The index nearly breached the 7,500-point threshold Friday, closing at a fresh peak of 7,498 points and continuing its record-breaking run. The surge came even after U.S. President Donald Trump said he cannot accept Iran's peace offer, renewing concerns over the Middle Eastern crisis, as major chipmakers here kicked off bullish tracking an overnight gain on Wall Street. On Friday (local time), major U.S. stock indexes closed higher, driven by a surge in chip and AI shares. Micron soared 15.49 percent, AMD jumped 11.44 percent, and Nvidia rose 1.75 percent. Copyrights Yonhap News. All Rights Reserved. Explore more investment opportunities and economic trends in Korea: www.investkorea.org #InvestKOREA #FDI #KOSPI #Semiconductors #StockMarket

Invest KOREA(Commissioner Tae Hyung Kim, PhD) is proud to be featured in the latest UN Trade and Development (UNCTAD) IPA Observer as a global benchmark for AI integration. Our AI-driven investor targeting system has not only increased our investment conversion rates, doubling them compared to traditional methods, but also optimized our operational efficiency, saving over 1,000 work hours annually. By combining advanced predictive analytics with the expertise of our specialists, we are de-risking and accelerating the investment journey for our global partners. #InvestKOREA #FDI #GlobalBusiness #UNCTAD #TechInGov

Standard & Poor's Global Credit Portal (S&P) has officially affirmed South Korea’s sovereign credit rating at ‘AA’ with a stable outlook. 🇰🇷📊 This confirmation underscores the resilience of the Korean economy, driven by world-class export competitiveness—particularly in semiconductors—and robust fiscal and external buffers. Despite global headwinds and volatility in energy markets, S&P anticipates that South Korea will maintain a higher average growth rate than most high-income peers over the next 3 to 4 years. - Robust Growth Trajectory: Following a recovery in 2026, the economy is expected to accelerate, with GDP per capita projected to surpass USD 44,000 by 2029. - Leading Industrial Competitiveness: Korea’s dominant position in high-tech sectors, specifically #Semiconductors and #IT, combined with high competitiveness in #Shipbuilding, remains a primary driver of sustained economic expansion. - Fiscal Soundness: The government’s commitment to fiscal discipline is reflected in a narrowing budget deficit (projected at 1.4% of GDP in 2026) and a low net government debt level of approximately 9% of GDP. - External Resilience: Strong current account surpluses—expected to remain above 6% of GDP through 2029—and a deep, liquid foreign exchange market provide significant shock absorbers against external financial pressures. - Institutional Stability: S&P noted that Korea’s institutional environment and swift policy responses continue to support national creditworthiness, effectively mitigating temporary political or geopolitical uncertainties. With all three major international credit rating agencies—S&P, Moody's Ratings, and Fitch Ratings—maintaining a "Stable" outlook for South Korea in 2026, the nation continues to demonstrate its reliability as a premier destination for foreign direct investment. The combination of fiscal health, technological leadership, and a proven ability to manage external shocks offers a secure and predictable environment for long-term capital commitment. Note: This post is a translation and adaptation by Invest KOREA, based on an official press release from the Ministry of Economy and Finance (https://lnkd.in/eAjQJuq3) #InvestKOREA #FDI #SouthKorea #CreditRating #SP #Macroeconomics

Google DeepMind Launches First Global AI Campus Outside the UK in Seoul Building on a shared vision for the future of artificial intelligence, the Ministry of Science and ICT (MSIT) and Google DeepMind have signed a Memorandum of Understanding (MOU) to elevate South Korea’s AI research ecosystem. This strategic partnership marks a significant milestone in integrating world-class AI capabilities with Korea’s robust industrial and scientific infrastructure. This collaboration underscores Korea’s evolving status as a premier global hub for AI-driven R&D and high-tech innovation. 🔍 Key Highlights of the Strategic Partnership: - The ‘K-Moonshot’ Project: The initiative focuses on leveraging AI to solve complex scientific challenges, drive research productivity, and achieve national strategic missions in fields such as life sciences and climate/weather prediction. - Talent Development & AI Campus: A dedicated "AI Campus" will be established to bridge the gap between academia, researchers, and startups. This hub will facilitate researcher exchanges and provide internship opportunities with Google DeepMind, ensuring a steady pipeline of top-tier AI talent. - AI Safety & Governance: Recognizing the importance of responsible innovation, both parties will engage in joint research regarding AI safety frameworks and model evaluation methodologies, aligning Korea’s regulatory environment with global standards. - National AI Research Center: Serving as the nexus for these efforts, the upcoming National Science AI Research Center will lead collaborative research and data integration, further deepening the synergy between public and private sector capabilities. Note: This post is a translation and adaptation by Invest KOREA, based on an official press release from the Ministry of Science and ICT(https://lnkd.in/eTguAwva) #InvestKOREA #FDI #GoogleDeepMind #KMoonshot #ArtificialIntelligence #AI #ResearchAndDevelopment #SupplyChain

Following the recent state visit by President Lee Jae Myung to Vietnam on April 23, 2026, both nations have reaffirmed their commitment to a future-oriented partnership. With South Korea already established as Vietnam’s largest foreign investor and bilateral trade nearing the $100 billion mark, this visit marks a strategic shift toward high-tech collaboration and comprehensive economic integration. 🔍 Key Highlights for the Investment Landscape: - Future Advanced Industries: Both nations are expanding their partnership beyond traditional manufacturing into high-value sectors, including #AI, #Semiconductors, and the #Digital economy, paving the way for next-generation industrial growth. - Resilient Supply Chains & Energy Security: The focus has shifted to building a robust supply chain ecosystem for strategic resources—such as rare earths and oil—while deepening cooperation in #NuclearPower, #RenewableEnergy, and long-distance power grid infrastructure to ensure sustainable energy security. - Scientific & Technological Advancement: Acknowledging the era of technological hegemony, both countries have committed to elevating bilateral cooperation in cutting-edge science and technology to drive future innovation. - Economic Foundation: With over 33 years of established trust, the robust bilateral framework serves as a reliable bedrock for enterprises seeking to navigate and expand within the dynamic Southeast Asian market. Note: This post is a translation and adaptation by Invest KOREA, based on an official press release from the Korea Policy Briefing (https://www.korea.kr). Photo copyright: Blue House (https://lnkd.in/etD3rDr2) #InvestKOREA #FDI #Korea #Vietnam #GlobalTrade #EconomicGrowth #SupplyChain #InternationalCooperation #AdvancedManufacturing #TechPartnership

Neuracle Science: Redefining Neurological Treatment 🧪🧬 In the 'Future Unicorns' section of our latest Invest KOREA Magazine, we spotlight Neuracle Science, a biopharmaceutical pioneer dedicated to overcoming degenerative neurological diseases that have long remained beyond the reach of conventional therapies. Founded by Dr. Jae Young Seong, Neuracle leverages a proprietary platform that focuses on synapse restoration to treat conditions of the central and sensory nervous systems. With a robust intellectual property portfolio of 342 patents and cumulative investments reaching KRW 73 billion (approx. USD 51.1 million) as of late 2025, the company is now advancing toward a pivotal milestone: Phase 2a clinical Proof-of-Concept (POC) for sudden sensorineural hearing loss (SSNHL). Neuracle Science exemplifies the high-caliber innovation supported by the Invest KOREA Startup Program (IKSP). 💡 IKSP serves as your gateway to Korea’s most promising, vetted startups. We streamline the investment process by sourcing high-growth projects and mitigating risk through the KRW 50 billion ‘New Industry Foreign Investment Promotion Fund.’ For global VCs and LPs, IKSP provides the strategic infrastructure to confidently identify and partner with Korea’s next generation of industry leaders. ☛ Learn more about Neuracle Science: https://lnkd.in/e9CdpPzH 🌐 The full version of Issue 2 is now available on the Invest KOREA official website: https://lnkd.in/euikDpV5 #InvestKOREA #IKSP #FutureUnicorn #Biotech #KStartup #FDI #Neurology #BioEconomy