Thailand’s Strategic Push to Attract South Korean Investment
The Industrial Estate Authority of Thailand (IEAT) is actively working to attract South Korean investors by proposing a new industrial complex specifically tailored to their needs. This strategic initiative, which is currently being reviewed by IEAT officials, South Korean authorities, and the Thai Industrial Estate and Strategic Partner Association, is designed to encourage more South Korean businesses to expand their operations into Thailand. IEAT Governor Sumet Thangprasert has confirmed that the Thai government is fully supportive of foreign investors and has identified South Korea as a key target market for stimulating economic growth. Executives from South Korean firms have expressed considerable interest in establishing a new industrial estate within the Eastern Economic Corridor (EEC), a high-tech hub spanning Chon Buri, Rayong, and Chachoengsao provinces. The EEC, which is home to 12 targeted S-curve industries like next-generation cars and smart electronics, is considered an ideal location for such a complex. With a proven track record of operating 68 industrial estates, including the prominent Map Ta Phut industrial estate, the IEAT has demonstrated its capacity for this type of large-scale development.
Proactive Outreach Yielding Tangible Results
Thai officials have taken a highly proactive approach in their efforts to attract new businesses, which has already yielded tangible results. As part of this push, they organized a comprehensive investment roadshow in South Korea last year to directly engage with potential investors. During the roadshow, they met with representatives from a wide range of industries, including electric vehicles, electronics, digital technology, renewable energy, and bioscience. This targeted outreach has paid off, as South Korean firms submitted seven new investment projects to the Board of Investment (BoI) in the first quarter of this year alone. These projects are collectively valued at 1.2 billion baht and are concentrated in sectors such as electrical appliances, machinery, and automotive parts, reflecting a positive response to Thailand’s business-friendly environment. These recent figures build upon a strong foundation of past investment, as South Korean companies submitted a total of 141 investment projects to the BoI from 2020 to 2024, with a combined value of 63 billion baht.
Cementing Strong Economic Ties for Mutual Growth
The ongoing efforts to attract more South Korean investment are part of a broader strategy to strengthen the already robust economic ties between the two nations. South Korea is a significant trading partner for Thailand, ranking as the 13th-largest globally, with a total trade value reaching US$15 billion in 2024. The depth of this economic relationship is further solidified by the presence of major South Korean corporations like Samsung, which has a substantial investment value of 31 billion baht in Thailand. Samsung’s local production of smartphones and home appliances not only provides jobs but also reinforces the strong and enduring economic partnership. This new initiative to establish a dedicated industrial complex and the continuous investment promotion activities underscore Thailand’s commitment to fostering a mutually beneficial relationship. By providing a conducive environment for South Korean businesses, Thailand aims to attract new capital, drive innovation, and promote sustainable growth, ensuring that the economic partnership continues to thrive for years to come.
