Singaporean United Overseas Bank (UOB) has launched its 11th Foreign Direct Investment [FDI] Advisory Centre in Seoul, South Korea, to help Korean investors break into the Association of Southeast Asian Nations (ASEAN) market.
The centre aims to provide businesses seeking to expand with services such as market entry advisory, regulatory support, financing and risk management services. It follows the establishment of a Korean desk in the bank’s Singapore offices in 2023.
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The initiative comes as Korean businesses have been increasing investments in the region. FDI flows from South Korea into South East Asia stood at $10.9bn (14.67trn won) in 2023, doubling from $5bn in 2017. ASEAN countries have witnessed steady FDI growth in the past few years despite a global decrease in foreign investment. Flows into the technology sector, particularly in semiconductors and AI, have led to record deal values.
South Korean businesses have mainly been looking to expand in the technology, consumer goods and manufacturing sectors, according to UOB. It also says it has helped 150 Korean businesses expand into ASEAN since launching its FDI Advisory Unit in 2011, with projected investments near S$3bn ($2.2bn).
UOB co-organised the Korea-ASEAN Business Forum on 26 March with PwC, law firm Kim & Chang and investment promotion agencies from the region to discuss opportunities.
Wee Ee Cheong, deputy chairman and chief executive officer at UOB, said: “FDI flows from South Korea into South East Asia have grown significantly in recent years, driven by companies’ strategic expansions into key markets such as Indonesia, Vietnam and Singapore. With our strength in regional connectivity, deep local knowledge and sector expertise, UOB is well positioned to help our clients tap these cross-border opportunities.”
