Singapore lender UOB has officially launched its 11th foreign direct investment ( FDI ) advisory centre in Seoul to support the growing number of South Korean companies seeking to expand into the Association of Southeast Asian Nations ( Asean ) region.

This centre, which is an expansion of the bank’s current dedicated Korea desk in Singapore that was established in 2023, will empower Korean businesses with opportunities for international expansion and enhance accessibility to the Korean market for global investors, leveraging on the bank’s extensive network and expertise in this region.

Korean companies are increasingly looking towards Southeast Asia as a strategic hub for business growth, with a notable surge in Korean FDI into this region, particularly in the sectors such as technology, consumer goods and manufacturing.

FDI flows from Korea into Southeast Asia more than doubled, according to Asean Investment Report data, growing from US$5 billion in 2017 to US$10.9 billion in 2023. As companies seek to diversify their operations and tap the region’s growing consumer population, they are “seeking out trusted partners to guide them through the complexities of cross-border expansion”.

The centre will play a pivotal role in offering customized solutions, ranging from market entry advisory and regulatory support, to financing and risk management services.

To date, the FDI advisory unit of the lender has supported 5,000 companies in their regional expansion efforts. These companies have a projected investment of more than S$50 billion ( US$37.35 billion ), enabling the creation of more than 250,000 jobs across the region since 2020.

“South Korea is one of Asean’s top trading partners and a leading investor in Southeast Asia,” adds Wee Ee Cheong, the bank’s deputy chairman and CEO. “FDI flows from South Korea into Southeast Asia have grown significantly in recent years driven by companies’ strategic expansions into key markets, such as Indonesia, Vietnam and Singapore. With our strength in regional connectivity, deep local knowledge and sector expertise, we are well positioned to help our clients tap these cross-border opportunities.”