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Korea and the World

KOREA AND GERMANY:TRADE & INVESTMENT STATUS

Mr. Bernd Stenger, Honorary Ambassador of Foreign Investment Promotion forKorea, said in his interview that Korea and Germany have many similarities. Andone major similarity is their dedication to excellence, especially in the automo-tive and technology sectors. As such, the two countries have been workingclosely for decades. Read on to find out more about the trade and investmentstatus of Korea and Germany.

Overview

A growing number of Korean small and medium-enterprises(SMEs) and individuals have chosen Germany as their investmentdestination for the last three years. The electronics, ICT, automo-bile, finance and medical equipment sectors previously attractedthe majority of Korean capital. But more recently, emerging indus-tries that adopt highly advanced technologies are gaining traction,including blood glucose meters, dental implants, dental diagnosticequipment and reagent kits and smart in-vehicle infotainment(IVI) systems. Korean investors are now interested in a broaderrange of items that include breathalyzers, microfiber products andartificial marbles. More and more Korean consulting firms are alsomaking inroads into the German market. Active investments arebeing made either through acquisitions (M&A) or the establish-ment of research institutes.

Korea’s Investment to Germany

Figures

From 1968 to Q1 2017, a total of 608 Korean firms invested inGermany through 1,611 reported investment projects worth USD4.597 billion.

Overview

Germany is Korea’s 14th largest export destination, followingChina, the United States, Vietnam, Hong Kong and Japan. Amongthe European Union, Germany is the second largest export market,next to the United Kingdom. Thanks to the Korea-EU FTA,Korea’s imports from Germany also have seen a steady rise, mak-ing the country the fourth largest importer of German goods andservices in 2014. Germany remained Korea’s sixth largest importpartner as of May 2017.

Korea’s Import and Export Status with Germany

Korea’s Trade with Germany

Category2013

Value GrowthRate

7,908

19,336

-11,428

5.3

9.6

-

2014

Value GrowthRate

7,571

21,299

-13,728

-4.3

10.2

-

2015

Value GrowthRate

6,220

20,957

-14,737

-17.8

-1.6

-

2016

Value GrowthRate

6,443

18,917

-12,474

3.6

-9.7

-

2017.3

Value GrowthRate

3,662

7,665

-4,003

46.9

-2.7