On August 19, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol attended a meeting hosted by the American Chamber of Commerce in Korea (AMCHAM Korea) at the Grand Hyatt Seoul. During the meeting, he outlined the Korean government’s economic policy direction and listened to the views of AMCHAM member companies.

The meeting was arranged to follow up on “AMCHAM Special Report: Korea’s Financial Hub Agenda,” which AMCHAM Korea presented in April.

In his opening remarks, Deputy Prime Minister Koo outlined Korea’s economic vision, progress in capital market reforms, and the direction of the country’s AI transformation.

First, Deputy Prime Minister Koo noted that Korea’s economic growth is expected to accelerate this year, with real GDP growth projected at 3 percent, the highest in five years, and per capita income is increasingly likely to reach USD 40,000. He then introduced the “3·4·5 Vision,” which aims to achieve a potential growth rate of 3 percent, position Korea among the world’s top four exporters, and raise per capita income to USD 50,000, along with three mega-projects in semiconductors, AI data centers, and physical AI to support these goals.

Deputy Prime Minister Koo then emphasized that the government is positioning the capital market as a key platform for growth and reforming the institutional framework in line with global standards. He highlighted key measures, including amendments to the Commercial Act to extend directors’ fiduciary duties to shareholders and Korea’s phased inclusion in the World Government Bond Index (WGBI), which began in April 2026. On FX, he stated that, following the announcement of the Roadmap for KRW Internationalization in July and the transition to 24-hour FX market operations on July 6, 2026, the government plans to officially launch an offshore KRW settlement system in January next year and substantially ease FX regulations.

In particular, reflecting recommendations made by AMCHAM Korea in its April report, Deputy Prime Minister Koo announced that the reporting threshold for foreign currency borrowing and the cash pooling limit for foreign bank branches will be raised from USD 50 million to at least USD 100 million.

He also noted that Korea’s strengths would be most evident in the era of physical AI, pointing to cooperation agreements worth USD 950 billion reached between Korean companies and major U.S. technology companies at the recent San Francisco AI Summit as “clear evidence of Korea’s potential to emerge as a key hub in the global AI supply chain.”

Following the opening remarks, a discussion moderated by AMCHAM Korea Chairman James Kim covered a wide range of topics, including key tasks and medium- to long-term growth strategies for achieving the “3·4·5 Vision,” strategies to position Korea as a global AI hub, and measures to enhance financial market accessibility. In the area of AI, participants also explored ways to strengthen cooperation between the government and AMCHAM Korea’s recently launched AI Leadership Council.

The implementation of the USD 350 billion Korea-U.S. strategic investment initiative was also a key item on the agenda. Deputy Prime Minister Koo noted that, with the Korea-U.S. Strategic Investment Corporation (KUIC) officially launched in June, the institutional framework for implementing the investment initiative is now in place. He stressed the importance of the private sectors of both countries working together to identify commercially viable and mutually beneficial projects, and expressed his hope that AMCHAM Korea would serve as a bridge between the Korean and U.S. governments in this process.

Deputy Prime Minister Koo said, “The Korean government views AMCHAM member companies not as foreign companies, but as members of the Korean economy,” noting that their investment and job creation over more than 70 years have become an integral part of Korea’s economy. He encouraged AMCHAM members to continue and expand their investment in Korea, provide policy recommendations based on their on-the-ground experience, and help convey Korea’s ongoing transformation to global investors.

In closing, Deputy Prime Minister Koo added that the government would closely consult with relevant ministries on the views raised at the meeting and actively incorporate them into future policy improvements where appropriate.

Please refer to the attached files.