[Meeting Overview]

Second Vice Minister of Finance and Economy Huh Chang hosted an Investor Relations (IR) session on the Korean economy for major global investors in Paris, France, on June 4 (local time).

At the briefing, senior executives from leading French investment banks and asset management firms attended, including Amundi, Europe’s largest asset manager, as well as BNP Paribas, Credit Agricole, Natixis, and Societe Generale.

The briefing was organized to further strengthen communication with global investors and respond to their strong interest in the Korean economy and capital markets, despite ongoing changes in the global trading environment and continued geopolitical uncertainties. In particular, as France is one of Europe’s leading financial centers, home to major long-term institutional investors and global financial institutions, the briefing provided an opportunity to effectively communicate the strong fundamentals of the Korean economy and the progress made in foreign exchange (FX) and capital market reforms, while broadening the base of European investors going forward.

[Presentation on the Korean Economy]

During the briefing, Vice Minister Huh stated that Korea is further enhancing its attractiveness as an investment destination, supported by its strong economic fundamentals and its pivotal position in the global artificial intelligence (AI) supply chain.

First, Vice Minister Huh noted that Korea’s exports reached approximately USD 390 billion during the January-May period of this year, representing an increase of more than 40 percent compared with the same period last year, driven by the semiconductor supercycle. He added that the strong export performance has been translating into broader growth across the real economy. In particular, Korea’s real GDP grew by 1.7 percent quarter-on-quarter in the first quarter of this year, marking the highest growth rate among OECD member countries that have released data to date. Gross domestic income (GDI) also increased by 7.5 percent quarter-on-quarter, demonstrating the continued strength of the economy’s growth momentum.

He further explained that Korea’s external position remains strong, with the current account surplus reaching USD 85 billion during the January-March period of this year, the fifth largest in the world and approximately 220 percent higher than in the same period last year. Should this trend continue, the current account surplus is expected to significantly exceed last year’s record-high level of approximately USD 123 billion.

He stressed that the government will continue to support strategic industries such as AI, semiconductors, and advanced manufacturing, while actively promoting domestic demand and private-sector investment, so that the current economic recovery can evolve into a sustainable source of structural growth rather than remain a temporary cyclical rebound. Efforts to modernize the capital market are also being accelerated, including enhanced corporate governance, stronger shareholder protection, and investor-friendly tax reforms such as separate taxation of dividend income.

He pointed out that Korea’s capital market reforms have begun to deliver tangible results, noting that the KOSPI has more than tripled since the launch of the new administration and that the market capitalization of the Korean stock market has risen to rank among the world’s top six or seven markets. In addition, foreign investment in Korean government bonds has continued to increase steadily following their inclusion in the FTSE World Government Bond Index (WGBI) in April this year, with cumulative net inflows reaching approximately USD 18.7 billion as of June 4.

Last but not least, he emphasized that the government will continue to press ahead with key initiatives, including the transition to 24-hour operation of the FX market, the establishment of an offshore Korean won settlement system, and improvements to account-opening and settlement procedures for foreign investors. He also encouraged foreign investors to take a keen interest in Korea and expand their investment in the country, underscoring the strong competitiveness of the Korean economy and capital market.

This was followed by a presentation by the Ministry of Finance and Economy (Director for International Finance), which covered: (i) recent economic developments and the fundamentals of the Korean economy; (ii) Korea’s key growth drivers; (iii) future policy directions; and (iv) reform efforts to enhance market accessibility.

Please refer to the attached files.