Thanks to the EU-Korea FTA, the EU is now Korea’s third-largest trade partner and its third-largest export market (after China and the US); the EU is Korea’s second-largest import market (after China). As for FDI, the EU is the largest investor in Korea, with over 7.1 billion USD in 2019. As of 2019, EU companies have been the largest contributors to inflows into Korea, with cumulative investments flows totalling 113 billion USD, representing 31% of total investment into Korea.
From 2008 to 2014, 56.9% of EU investments in Korea has been undertaken in the services sector, 40.2% in the manufacturing sector, and 2.9% in the utilities and construction sectors. Within the services sector, finance, banking, and insurance accounted for 24.6% of total FDIs, and those in the wholesale and retail sector 14.1%. The largest part of investment in the manufacturing sector went to chemicals (13%) and electrical and electronic equipment (6%).
According to the Korean Ministry of Trade, Industry and Energy officials, the EU-Korea FTA has been the primary catalyst in the steadily increasing FDIs from the EU. This context is particularly essential because Korea is part of the world’s third-largest network of FTAs. Foreign companies are responsible for at least 18% of Korea’s total exports. Having a manufacturing base in Korea enables them to access 55 markets that have signed FTAs with Korea, accounting for 77% of global GDP. Koreans are generally in favour of European investments particularly because they allow the Korean economy to move away from its traditional dependence on American and Japanese industries, as the European economy is perceived as more stable and predictable than many others.
References
The Pragmatic Globalist 
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