France ranks as Korea’s third-largest foreign investor
A recent report by the French-Korea Chamber of Commerce and Industry (FKCCI) reveals that French companies employ approximately 33,000 individuals in South Korea, solidifying France’s significant presence within the Korean economy.
The report highlights the prominence of French brands in the Korean luxury market, indicating that around 38% of these employees are engaged in the luxury goods and cosmetics sectors.
As of November of the previous year, approximately 220 French companies maintained local operations in Korea. Notably, about 80% of the 46 French firms listed on Forbes’ Global 2000, a ranking of the world’s largest public companies, have established a presence in the Korean market.
LVMH, the parent company of iconic brands like Christian Dior and Louis Vuitton, stands as the largest French employer in Korea, providing employment to roughly 4,000 individuals through direct and indirect roles. Automotive parts supplier Valeo follows with around 3,500 employees, and car manufacturer Renault employs approximately 3,200.
According to French Customs data cited in the report, 6,355 French companies exported goods to Korea in 2024. Bilateral trade volume reached 13.7 billion euros ($16.2 billion), with French exports accounting for 6.9 billion euros. France holds the position of Korea’s leading supplier of cosmetics, perfumes, and wine.
However, officials suggest that official trade figures may not fully capture France’s complete economic contribution.
“When measured in value-added terms, a significant share of France’s exports to Korea transits through third countries,” stated Julien Herveau, vice chair of the FKCCI, during a press conference held at the French Embassy in Seoul.
Herveau suggested that the actual value of French exports to Korea could potentially exceed reported figures by more than 50%, as 70% of shipments consist of equipment and intermediate goods utilized in Korean manufacturing – positioning French firms as vital components of Korea’s strategic industrial value chains.
Data from the Korea International Trade Association indicates that France is the third-largest foreign investor in Korea.
The FKCCI also addressed concerns regarding Korea’s “Yellow Envelope” bill, a labor law amendment aimed at enhancing union rights and broadening worker protections.
“What is essential now is to establish a clearly defined framework, provide clarification and ensure a smooth transition to avoid uncertainty for investors,” stated FKCCI Chair David-Pierre Jalicon.
The chamber indicated that French businesses have established a task force in collaboration with Korean authorities to discuss the potential implications of the revised law, scheduled to take effect on March 10.
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