South Korea promotes 'Korea premium' to British investors, highlighting AI prowess

By Kang Yoon-seung

SEOUL, May 19 (Yonhap) -- Finance Minister Koo Yun-cheol highlighted South Korea's solid economic fundamentals and strong artificial intelligence (AI) capabilities to investors in Britain, promoting what he called the "Korea premium," his office said Tuesday.

Koo made the remarks during a meeting with global investors in Britain on Monday (London time), attended by around 20 senior officials from 17 leading financial companies, including BlackRock Inc., J.P. Morgan Asset Management and BNP Paribas, according to the Ministry of Finance and Economy.

The event was organized to engage with key global investors amid growing interest in the South Korean capital market, the finance ministry said.

"The so-called Korea discount has become a term of the past, and the Korea premium has become a new reality. Now is the golden time to invest in South Korea," Koo said during the session.

The Korea discount is a term used to describe the tendency for South Korean stocks to trade at lower valuations than their global peers due to financial regulations and other barriers that hinder foreign investment.

Koo said South Korea has been introducing investor-friendly tax reforms and is pushing to overhaul the financial market.

On the back of such efforts, the finance minister said the Korea Composite Stock Price Index (KOSPI) has surged more than 170 percent since the launch of the new administration in June last year, making South Korea's stock market the world's seventh largest.

South Korea had attracted additional funds worth US$10.9 billion as of Friday following the country's inclusion in the World Government Bond Index in April, he added.

South Korea is taking a leading role in the high bandwidth memory, secondary battery and sensor sectors essential to the physical AI industry, and its outstanding infrastructure makes Asia's fourth-largest economy an attractive investment destination, Koo stressed.

Looking ahead, the finance minister told investors that South Korea is working to further lower barriers for foreign investors, including through the launch of a 24-hour foreign exchange market.

In response to growing concerns over supply disruptions caused by the Middle East crisis, Koo said South Korea is reviewing proactive measures to strengthen its supply chains, including expanding domestic production capacity and diversifying import sources.

Koo also held separate meetings with HSBC Group CEO Georges Elhedery and Schroders Group CEO Richard Oldfield to discuss ways to expand cooperation with South Korea, the finance ministry said.

During the meeting with Elhedery, Koo asked for HSBC's support for South Korea's efforts to strengthen its financial market and expressed hope to work with the company in the AI supply chain sector.

In response, Elhedery said South Korea has been enhancing its role in the global economy by increasing the openness of its financial market, according to the finance ministry, adding that HSBC will support the global expansion of South Korean companies and investors.

During the meeting with Oldfield, Koo said Seoul views financial reform as a long-term task and expressed hope that Schroders will play a role in attracting investment in AI and other cutting-edge industries.

Oldfield said such reforms will support global investors' long-term investment in the South Korean market, adding that the company will continue to maintain ties with South Korea in areas such as renewable energy and venture capital.

The finance ministry said Koo also met with Odile Renaud-Basso, president of the European Bank for Reconstruction and Development (EBRD), in London and signed a letter of intent to establish the AI K-Hub in South Korea.

The hub will help the EBRD apply AI to its projects in developing countries and support those nations in building AI-related capabilities, according to the finance ministry.

Koo said AI technologies can offer developing countries an opportunity for economic development, adding that the South Korean office will serve as a global hub for AI cooperation.