Korea's midsize firms seek strategies to navigate US market risks

The Korea Federation of Mid-sized Enterprises co-hosted the "2026 Midsize Companies' A to Z US Market Entry Seminar" with the Ministry of Trade, Industry and Energy on Tuesday at the Korea Listed Companies Association Hall in Seoul. The seminar was organized to help midsize companies share challenges related to taxation, corporate establishment, labor, finance and location as they enter the US market, and to discuss response strategies in each area.

The event drew about 80 executives and employees from midsize companies, along with Andrew Gately, commercial attaché at the US Embassy in Seoul; Shin Hee-jung, representative of the Tennessee Governor's Office Korea; Kim Ji-yeon, representative of the Georgia Department of Economic Development Korea office; Kim Gyu-seong, senior executive vice president at Bank of Hope; Steven Jeon, managing vice president at CBRE; Kim Se-jin, head of the Trade and Industry Policy Center at Bae, Kim & Lee LLC; and Kim Hyun-chul, executive vice president of the Korea Federation of Mid-sized Enterprises.

The seminar featured expert presentations on topics including "Key Checkpoints for Changes in the US Market Entry Environment in 2026," "Managing Financial Risks for US Subsidiaries" and "Assessing Location Risks," as well as briefings on investment environments and incentives across US states. Korean representative offices of Georgia, Arizona, Virginia and Tennessee outlined tax benefits, investment incentives, port and logistics infrastructure, and administrative support programs available in their respective states.

Speakers also noted a broader shift in how Korean companies are approaching the US market. Kim Se-jin said companies are increasingly moving away from a "produce domestically, then export" model toward one of "establish a local subsidiary, then supply locally." He added that companies must carefully review key considerations before committing to market entry, including corporate structure, taxation, visa and labor issues, location, and lessons from past successes and failures.

Gately said Korean midsize companies are becoming an important pillar of Korea-US economic cooperation by building long-term partnerships in the United States across key industries such as semiconductors, automobiles, batteries and shipbuilding. He added that the US Embassy in Seoul would work with the federation to help Korean midsize companies make full use of the US industrial landscape and business opportunities.

Kim Hyun-chul said entering a foreign market goes beyond setting up a subsidiary or building a factory — it requires redesigning a company's business structure and operational systems to fit the local market. He said the federation would maintain close communication with the US Embassy in Seoul, US state governments and overseas partner organizations to help midsize companies respond swiftly to the rapidly shifting US trade environment.