The South Korean government held an investment briefing in Paris on June 4, aimed at promoting the country's economic growth and capital market reforms to key European investors. Attendees expressed strong interest, noting that they already view the South Korean market as a "core market" on par with the U.S. and Europe.
The Ministry of Finance announced that Deputy Minister Heo Jang hosted the briefing, which included senior executives from major French investment firms such as Amundi, BNP Paribas, Crédit Agricole, Natixis, and Société Générale.
During the briefing, Heo emphasized the solid fundamentals of the South Korean economy. He reported that exports surged over 40% year-on-year to approximately $390 billion from January to May, driven by a semiconductor supercycle. He also noted that the country's GDP growth rate for the first quarter was 1.7%, the highest among OECD member countries reported to date. Additionally, gross domestic income rose by 7.5% compared to the previous quarter, indicating ongoing growth.
Heo highlighted South Korea's external soundness as an attractive investment factor, stating that the current account surplus for the first quarter reached $85 billion, ranking fifth globally and representing a 220% increase from the previous year. He projected that if the current trend continues, the surplus could significantly exceed last year's record of $123 billion.
He pointed to capital market reforms as a key factor behind the strong performance of the South Korean stock market. He noted that reforms such as amendments to corporate law, enhanced shareholder protections, and separate taxation of dividend income are being implemented. He stated that the stock market is transitioning from a "Korea Discount" to a "Korea Premium," particularly in light of the semiconductor and artificial intelligence supercycles. He also mentioned that since the inclusion in the World Government Bond Index (WGBI) in April, foreign investment in government bonds has reached approximately $18.7 billion.
The government actively promoted its foreign exchange market modernization policies, including 24-hour market operations, the establishment of an offshore won payment system, and improvements to account opening and settlement procedures for foreign investors. Currently, 80 foreign financial institutions are registered as foreign exchange business operators in South Korea, and nighttime trading is gradually increasing.
European investors attending the briefing showed keen interest in strategies to address the prolonged Middle Eastern conflict, the recent surge in the South Korean stock market, and the outcomes of foreign exchange market reforms. They particularly praised the growth trajectory of the South Korean economy and the government's commitment to market reforms, stating, "The South Korean market is already recognized as a core market comparable to European and U.S. markets."
* This article has been translated by AI.
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