Korean companies created over 820K jobs in US in 2023

The Korean economy has been put to the test by increasing U.S. trade protectionism, including the reciprocal tariffs imposed by the second term of Donald Trump’s administration. Meanwhile, it has been known that Korean companies have been significantly expanding their investment in the U.S., including increasing their production facilities in line with U.S. policy direction over the past several years. Experts view that such efforts by Korean companies have opened a new chapter in Korea-U.S. economic cooperation amid the evolving trade environment, including the U.S.-China trade conflict and reshoring.

According to statistics from relevant authorities and industrial research institutes, the number of jobs directly and indirectly created by Korean companies operating in the U.S. (including jobs derived from product delivery and sales) as of 2023 reached approximately 820,000. Thanks to Korean companies, the population equivalent to the entire population of San Francisco (809,000 in 2023) has been hired.

Korea has also become one of the world's largest investors in the United States. According to data analysis from the United Nations Conference on Trade and Development (UNCTAD) reported by the Financial Times, Korea invested 21.5 billion dollars in the United States in 2023. It was ranked in the top 10 in the 2010s but has now surpassed Japan and Taiwan to take first place. The number is based only on "greenfield" investments, which involve direct facility investment and corporation foundation in the investing country. According to statistics on foreign direct investment (FDI) compiled by the Export-Import Bank of Korea, the top investment target for Korean companies has been the United States for 14 consecutive years from 2011 to last year. Currently, 2,432 Korean companies are operating in the United States (Korea International Trade Association, 2024 analysis).

Business communities view that the Korea-U.S. economic relationship has evolved to a higher level, regardless of the Trump administration’s re-election. In the past, mid- to low-priced products produced domestically were exported to the U.S. through the Korea-U.S. Free Trade Agreement (FTA) or near-shoring, Korean companies are now evolving into ‘KORUS (KOREA+U.S.) nomics 2.0’ in which they collaborate with local companies in the U.S. to open new markets and contribute to the local U.S. economy.

“With a population of over 300 million and very high-income levels, the U.S. market has become a ‘second domestic market’ for Korean companies," said Yoon Sung-yong, vice chairman of the Korea Chamber of Commerce in the U.S. "The U.S. should also keep pace with the evolving Korea-U.S. economic relationship by issuing long-term visas and institutional improvements for Korean businesspeople."


한재희 hee@donga.com