of Korean-invested Companies Reached 75,000 in the US
- After the Korea-US FTA, entry
into the wholesale and retail business has decreased while high-value added service
industry has increased -
Since the Korea-US Free Trade Agreement took effect, it is
analyzed that the number of employees by the corporations invested by Korean
entities in the US has been continuously growing and the entry into the high
value added service industry has been gradually expanding.
The Korea International Trade Association (President Kim
Young-joo) analyzed the D / B of the companies in the US provided by Duns &
Bradstreet (D & B), a US-based global corporate credit information company.
The analysis shows that as of August this year, there are 847 companies (1,716
business offices including branch offices) in the US that Korean companies have
invested in and about 75,000 employees are hired. These companies are mostly in
California, Texas and New Jersey. The number of workers hired by
Korean-invested firms is the highest in California.
By the US state, these companies are mostly in California,
followed by Texas, New Jersey, and Alabama. In addition, California has the
largest number of employees hired by Korean-invested companies, followed by
Alabama, Georgia and Texas. The Rust Belt area has 147 Korean-invested companies
accounting for 17.4 percent of the total. 12,000 employees are hired by these
companies accounting for 16.0% of the total employment. It implicates that
Korean companies’ investment and employment are active in the Rust Belt region.
By industry, while the proportion of manufacturing is the
highest, wholesale and retail penetration has declined since the free trade
pact came into effect. The analyst demonstrates that more Korean companies are
entering into service sectors such as computer programming engineering, heating
and cooling power systems, and transportation in the US. This means that Korean
companies' market expansion into the US is shifting from a simple sales
corporation to a high-value added industry and their business practice is
advancing to directly providing products and services.
The Korea International Trade Association also introduced the
cases of Korean companies that invested in the US. These companies share
something in common that they have boldly challenged the US market with a view
to becoming a global brand and have succeeded in investing in the US as they
respected the local management and the employees.
They are maximizing their investment performance through proper
role sharing between the offices in Korean and the US. They also contribute to
local communities through a variety of social activities such as supporting for
the underprivileged and environmental protection, etc.
Cho Sung-tae, deputy director of Americas Department at KITA
said, "There has been some allegation that the Korea-US free trade
agreement has reduced jobs in the US, but it has been confirmed that Korean
companies are creating high-quality jobs as their investment has been
increased." He also mentioned, "As Korean companies announce plans
for a large-scale investment in the United States, it is expected that employment
in the United States by Korean companies will grow even more."