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The number of South Korean companies that are operating in each US state.

With South Korean investment in the US increasing since the South Korea-US Free Trade Agreement (KORUS FTA) took effect, over 1,700 South Korean companies are employing 75,000 Americans, a new analysis shows. This is prompting the assessment that the KORUS FTA has not only expanded trade between the two countries but also contributed to the creation of jobs in the US through direct investment.

On Nov. 21, the Korea International Trade Association (KITA) announced that its analysis of the US corporate database of Dun & Bradstreet (D&B), an American company specializing in corporate credit data, showed that, as of Aug. 2017, there were 847 South Korean-invested companies in the US (1,716 if local branches are included) and that these companies are employing more than 75,000 people. KITA’s analysis covered the current state of job creation at all US companies in which a majority share is controlled by South Korean capital, regardless of the amount of assets, revenue or net earnings.

When examined by state, South Korean-invested companies were most numerous in California, Texas, New Jersey and Alabama (in descending order), while those companies employed the largest number of employees in California, Alabama, Georgia and Texas. There were 147 South Korean-invested companies, or 17.4% of the total, in the Rust Belt, the home of US President Donald Trump’s political support group, and those companies employed 12,000 workers, or 16.0% of the total.

The sector with the largest number of companies was manufacturing. Since the KORUS FTA took effect, the South Korean presence has declined in the wholesale and retail industries but increased in the service sector, including computer programming; engineering; heating, cooling and power systems; and traffic and communication. “This means that South Korean companies’ presence in the US has transitioned from simple sales to the high value-added service industry and that this is being upgraded by directly providing products and services,” KITA said.

South Korean investment in the US shot up from US$7.32 billion in 2012 to US$12.91 billion last year, and as of June of this year, the figure already stood at US$10.33 billion. “While some [such as President Trump] have claimed that the KORUS FTA has reduced American jobs, we have confirmed that South Korean companies’ investment in the US has actually increased, creating good-quality jobs,” KITA said.

By Cho Kye-wan, staff reporter

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