AMCHAM members part of Korean economy, not foreign firms, deputy PM says

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Wednesday that the South Korean government views member companies of the American Chamber of Commerce in Korea (AMCHAM) not as foreign firms but as integral parts of the Korean economy, and urged the chamber to serve as a bridge between the two governments.

AMCHAM hosted Koo at a special luncheon forum Wednesday at the Grand Hyatt Seoul hotel in Yongsan-gu, Seoul.

The event was organized as a follow-up policy dialogue to a special report on strategies for developing Korea into a financial hub, which AMCHAM submitted to the South Korean government in April.

About 150 officials from the South Korean and US governments and executives from domestic and foreign companies attended. Key agenda items included Korea's medium- and long-term economic vision, implementation of strategic investments between the two countries, AI cooperation and the role of US companies in supporting Korea's economic growth.

Koo said Korea's real GDP growth rate this year is expected to reach 3 percent — the highest in five years — and per capita national income to approach $40,000. He highlighted the government's "3-4-5 Vision," which targets a potential growth rate of 3 percent, exports ranking among the world's top four and per capita national income of $50,000.

Koo also outlined plans to improve the capital and foreign exchange markets. On the foreign exchange front, he said the government plans to formally launch an offshore won settlement system in January and sharply ease foreign exchange regulations, following last month's announcement of a won internationalization roadmap and a shift to a 24-hour foreign exchange market.

"We have decided to raise the reporting threshold for foreign currency borrowings by foreign bank branches and the cash pooling limit from the current $50 million to at least $100 million," Koo said.

AMCHAM Chairman and CEO James Kim said the growth of Samsung and SK Hynix illustrates the transformation the Korean economy has achieved, adding that now is the right time for Korea to emerge as a global financial and business hub leading investment and innovation.

"To translate these opportunities into tangible results, Korea needs to reform its unique regulatory barriers and improve alignment with global standards," Kim said, adding that AMCHAM would work closely with the Ministry of Economy and Finance and relevant ministries to ensure the policy recommendations in its special report lead to concrete change.

The implementation of $350 billion in strategic investments between South Korea and the United States was also a key agenda item.

Kim said that in the course of more than 30 high-level meetings recently held with officials from the White House, the administration, Congress and policy institutions, a consistent message emerged: the next phase of Korea-US economic cooperation must be grounded in substantive investment in strategic industries, closer technology collaboration and, particularly, regulatory alignment in the digital economy.

In response, Koo said the institutional foundation for implementing the investments was established when the Korea-US Investment Corporation (KUIC) was officially launched in June.