United Overseas Bank (UOB) has launched a foreign direct investment (FDI) advisory centre in Seoul on March 27, an expansion from its dedicated Singapore-based Korea desk that was set up in 2023.
The centre, which is the bank’s 11th, will support the growing number of Korean companies seeking to expand into Asean through customised solutions ranging from market entry advisory and regulatory support to financing and risk management services, says UOB.
According to the bank, the launch of the advisory centre comes at a time when Korean companies are increasingly looking towards Southeast Asia as a strategic hub to expand their business. To be sure, the region has seen a “notable surge” in Korean FDI into the region, especially in sectors such as technology, consumer goods and manufacturing, says the bank.
Referring to numbers released in the Asean Investment Report 2024, the bank notes that FDI flows from Korea into Southeast Asia have more than doubled, from US$5 billion in 2017 to US$10.9 billion in 2023. “This trend is set to grow due to various factors, including supply chain shifts, trade tensions, digital economy and the region’s ever-evolving consumer demographics,” says UOB.
“South Korea is one of Asean’s top trading partners and a leading investor in Southeast Asia. FDI flows from South Korea into Southeast Asia have grown significantly in recent years driven by companies’ strategic expansions into key markets such as Indonesia, Vietnam and Singapore,” says Wee Ee Cheong, UOB’s deputy chairman and CEO.
“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,” he adds.
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The centre's launch comes a day after UOB co-organised the Korea-Asean Business Forum in the South Korean capital.
The forum was organised with PwC, law firm Kim & Chang and alongside partners such as Singapore’s Economic Development Board (EDB), Indonesia Investment Promotion Board, Thailand’s Board of Investment, Malaysia Investment Development Authority, the Vietnam Embassy in Korea and the Korea Trade-Investment Promotion Agency.
UOB began its FDI advisory unit in 2011 and has helped over 150 Korean companies expand into Southeast Asia with projected investments of close to $3 billion.
