Illustration: Liu Xidan/GT
As the investment situation in the South Korea has recently attracted attention, Yonhap News Agency on Sunday quoted a professor of economics at Sogang University as warning that annual investments in the US may double starting next year and if corporate capital outflows occur, they could undermine domestic investment capacity.
Given the importance of manufacturing investment in South Korea’s economy, such concerns are no exaggeration. Data from the Ministry of Trade, Industry and Energy of South Korea reveals that investments in South Korea’s 10 key manufacturing sectors, including semiconductors, automobiles, and shipbuilding, reached 114 trillion won ($79 billion) last year, accounting for 4 percent of GDP and 42 percent of total industrial equipment investment, according to Yonhap. The figures may serve as a testament to the significance of manufacturing investment, which upholds South Korea’s technological innovation, employment stability, and industrial upgrading.
While investment in the US may bring market access for South Korean companies, the decline in investment capacity in South Korea may mean that its industries gradually lose their edge in the international market. A decline in investment means that manufacturers may not be able to update their production equipment in a timely manner, and insufficient investment in research and development (R&D) will slow down technological innovation in the manufacturing industry.
In this context, attracting regional capital to stabilize its industrial base is beneficial for its economy. The most promising route to easing pressure of potential corporate capital outflows is deeper, more pragmatic regional cooperation across Asia.
As an integral part of the Asian industrial chain, South Korea still possesses distinct strengths in industries like semiconductors, OLED, vehicles and batteries, and shipbuilding. South Korea can convert regional demand into concrete investment by pursuing proactive, open measures that will make South Korean assets more attractive to regional investors.
For instance, South Korea can accelerate the second-phase negotiations of the South Korea-China free trade agreement, promote local-level economic and trade cooperation, and continue deepening bilateral trade and investment as well as regional and multilateral cooperation. As a major Asian economy, China offers a vast market, a robust industrial ecosystem, and cutting-edge technological capabilities.
Strengthening China-South Korea economic ties could lower trade barriers, facilitating South Korean companies’ access to the Chinese market while attracting Chinese investment in areas such as supply chain collaboration and joint R&D in South Korea.
South Korea’s active participation in broader regional multilateral cooperation mechanisms can also play a vital role in building a more resilient economic system. South Korea can further deepen its economic partnership with ASEAN, and the Regional Comprehensive Economic Partnership also provides a broad platform for South Korea to strengthen cooperation with its Asian neighbors. By participating in these regional multilateral cooperation mechanisms, South Korea can optimize the global allocation of capital, enhance the stability and flexibility of the domestic industrial chain, and continuously inject vitality into the upgrade of the industrial chain.
Some observers in South Korea have proposed bolstering the competitiveness of the services sector to offset the decline in manufacturing. As Asia undergoes a consumption upgrading and industrial transformation, rising demand for healthcare, high-end cultural tourism, and digital services, if matched to South Korea’s mature expertise through regional cooperation, could also broaden the country’s economic growth opportunities.
原文地址：http://en.people.cn/n3/2025/1104/c90000-20385901.html