Deputy PM Koo asks AmCham Korea to bridge $350B Korea-US strategic investment

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol on Wednesday urged the American Chamber of Commerce in Korea (AmCham Korea) to serve as a bridge between the two governments.

Koo made the remarks at an AmCham Korea-hosted forum at the Grand Hyatt Seoul in Yongsan-gu, where he discussed plans to implement $350 billion in strategic investment agreed upon by the two countries.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and AmCham Korea President James Kim hold a forum at the Grand Hyatt Hotel in Yongsan-gu, Seoul, on Wednesday. [Yonhap]

The forum was organized as a follow-up to a report on Korea's financial hub strategy that AmCham Korea submitted in April. About 150 people attended, including AmCham Korea President James Kim, US government officials and executives from domestic and foreign companies.

Koo said the Korea-US Investment Corporation (KUIC) officially launched in June, establishing an institutional foundation for carrying out the investment commitments. "Going forward, it is important for the private sectors of both countries to jointly identify projects that are commercially viable and mutually beneficial," he said.

He added that the Korean government views AmCham Korea member companies not as "foreign firms" but as part of the Korean economy, saying the investment and employment they have built up over more than 70 years are already an integral part of it.

Koo asked the chamber to continue and expand investment in Korea, offer policy recommendations grounded in on-the-ground experience, and communicate Korea's changes to global investors.

He also outlined the government's key policy directions, covering the Korean economy's long-term vision, reforms to capital and foreign exchange market systems, and the AI transformation.

Koo said Korea's economic growth is accelerating this year, with real GDP growth projected at 3 percent — the highest in five years — and per capita national income now within reach of $40,000. He introduced the government's "3-4-5 Vision," which targets 3 percent potential growth, a top-four global export ranking and $50,000 per capita income, along with three mega-projects to support it: semiconductors, AI data centers and physical AI.

On capital markets, Koo said the government is treating the capital market as a core growth platform and aligning its regulatory framework with global standards. He cited the Commercial Act amendment to extend directors' fiduciary duties to shareholders and the phased inclusion in the World Government Bond Index (WGBI) as key examples.

On the foreign exchange front, following the release of a won internationalization roadmap in July and the shift to a 24-hour foreign exchange market, Koo said the government plans to launch an offshore won settlement system in January next year. He added that foreign exchange regulations will be significantly eased going forward.

In particular, reflecting proposals from AmCham Korea's April financial hub strategy report, the government decided to raise the foreign currency borrowing reporting threshold and cash-pooling limit for branches of foreign banks from $50 million to at least $100 million.

Koo said Korea's strengths will be most evident in the era of physical AI, and stressed the potential for cooperation between Korean and US companies in the AI sector.

Regarding $950 billion in cooperation agreements reached between Korean companies and US big tech firms at the San Francisco AI Summit, he said it was "proof that Korea is promising as a key hub in the global AI supply chain."

The forum covered key tasks for achieving the 3-4-5 Vision, medium- and long-term growth directions, Korea's strategy for becoming a global AI hub, and measures to improve financial market access. Cooperation between the government and AmCham Korea's newly launched AI Leadership Committee was also discussed.

y2k@heraldcorp.com