South Korea Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in South Korea, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

•    Openness to, and Restrictions upon, Foreign Investment, 
•    Investment and Taxation Treaties,
•    Legal Regime,
•    Industrial Policies,
•    Protection of Property Rights,
•    Financial Sector,
•    State-owned Enterprises,
•    Corruption,
•    Labor Policies and Practices,
•    Political and Security Environment, and
•    U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

 

EXECUTIVE SUMMARY

The Republic of Korea (ROK) is the world’s 12th largest economy by nominal GDP – driven largely by semiconductor, automotive, and petrochemical manufacturing industries – and the United States’ sixth largest trading partner.  The United States had a $56.4 billion goods trade deficit and an $11.3 billion services trade surplus with the ROK in 2025.  The ROK attracted a record-high $36 billion in FDI in 2025, focused on future-oriented sectors such as digital and financial services, AI, advanced manufacturing, energy, and pharmaceuticals.

The revised U.S.-Korea Free Trade Agreement (KORUS) entered into force on January 1, 2019, and helps secure U.S. investors broad access to the ROK market.  U.S. investors are generally treated the same as ROK investors in the establishment, acquisition, and operation of investments in the ROK.  Investors may bring claims against the government for alleged breaches of trade rules under a transparent international arbitration mechanism.  The ROK offers foreign investors political stability, public safety, world-class infrastructure, a highly skilled workforce, and a dynamic private sector.

President Lee Jae Myung assumed office as president of the ROK in June 2025 following a brief period of political upheaval resulting from his predecessor’s failed attempt to impose martial law in December 2024 and subsequent impeachment.  Lee’s administration took office pledging to restore public trust, stabilize domestic governance, and revitalize the economy, with an emphasis on regulatory reform and targeted support for strategic industries such as green energy and advanced technology, including AI.

Despite the size and sophistication of the ROK economy, foreign investors often experience challenges from the ROK’s complicated, opaque, and country-specific regulatory framework and rigid labor policies.  Following a meeting with President Trump in October 2025, Lee committed to reduce non-tariff barriers that impede U.S. companies, including in the digital services, automotive, and food and agricultural products sectors.  As of April 2026, the U.S. government continues to advocate for the removal of these non-tariff barriers.

https://www.state.gov/reports/2025-investment-climate-statements/south-korea/ 

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