France’s Economic Presence in Korea.
On the Map
France’s presence in Korea shines through the dynamism and diversity of its business community, ranging from multinational groups such as Airbus, Total, Thales and Veolia to SMEs and start-ups such as Asiance, Direct Optic and Evasion, as well as leading French brands in sectors ranging from luxury to architecture and aerospace.
Discover France’s presence in Korea on our interactive map.
A Brief History
The French economic presence in Korea is the result of a long history dating back to 1886, with the first diplomatic treaty signed between the two countries. In terms of business relations, the first significant exchanges began in the 1960s. Since then, the presence of French companies in Korea has continued to grow, evolving and adapting to the different stages of Korea’s economic development.
This development can be summarized in four phases.
Phase 1: Establishment of Major French Companies
Between 1953 and 1970, Korea’s GDP increased fivefold, while GDP per capita rose from USD 67 to USD 253. As the government focused on developing the country’s industrial sector, France, through its major corporations, began contributing to the construction of industrial facilities and infrastructure, including power plants, roads and railway networks, as well as ship maintenance.
In 1964, Air France became the first French company to open offices in Korea. The airline was followed in the 1970s by other major companies such as Pechiney (1972), Airbus Industries, Alstom CGE, Degrémont, Indosuez (1974), Rhône-Poulenc (1975), and BNP (1976). Between 1970 and 1979, bilateral trade increased from USD 54 million to USD 607 million.
In 1986, these pioneering companies came together to establish the French-Korean Chamber of Commerce and Industry, initially known as the Association of French Companies in Korea. At the time, it had 30 members.
Phase 2: An Expanded French Presence
1988 was a pivotal year for Korea. The Seoul Olympic Games drew worldwide attention to the country, showcasing Korea’s modernity, dynamism, and unique character. As the country embarked on a process of economic liberalization and opening, an increasing number of French companies established operations in Korea across a wide range of sectors, including agri-food, automotive manufacturing, insurance, and consumer goods.
The contract signed in 1993 for the high-speed rail line connecting Seoul and Busan was a major milestone of the decade. “We are at the beginning of a new era in relations between Korea and France. The future is promising,” declared President François Mitterrand during his state visit in 1993. This first French presidential visit significantly strengthened France’s image in Korea and provided new momentum for closer and more promising cooperation within the Franco-Korean community.
By 1996, the French-Korean Chamber had 123 member companies and opened its membership to non-French companies in order to encourage greater synergy between France and Korea.
Phase 3: Merger and Acquisition Opportunities
The 1997–1998 IMF crisis marked a decisive turning point in Franco-Korean relations. As Korea opened up to globalization and developed into a consumer society, France followed the country’s transformation and actively contributed to shaping Korea’s future through major mergers and acquisitions, as well as joint ventures.
French companies, which had traditionally operated in Korea by securing major contracts, began investing directly in the country. Between 1997 and 2001, France ranked among Korea’s largest foreign investors (currently 7th). Since the 2000s, French investments have increasingly stood out for their qualitative and long-term approach.
Major successful partnerships, such as Lafarge Halla Cement and Renault Samsung Motors in 2000, as well as the joint venture between Total and Samsung General Chemicals in 2000, illustrate the strong potential of Franco-Korean cooperation.
Phase 4: The Era of Partnerships and SMEs
In 2011, the Free Trade Agreement between the European Union and Korea gave new momentum to bilateral trade, which could double over the next 20 years!
Today, the Chamber has more than 350 French and Korean members and is dedicated to developing synergies between French and Korean expertise. This new stage in Franco-Korean relations has seen the arrival and creation of numerous French SMEs. France now offers an increasingly broad range of services in its areas of excellence, including aerospace, energy, agri-food, fashion and luxury goods, as well as tourism, marketing, IT and architecture. The inauguration of the French Tech Hub Seoul in March 2016, an ecosystem designed to facilitate the entry of French start-ups into the Korean market, has helped create a stimulating environment for developing new partnerships.
France has thus demonstrated its ability to continuously adapt while remaining a reliable partner for Korea. This partnership can only grow stronger as both countries increasingly turn toward innovation and the creative economy to build the future. As President Park Geun-hye stated during her visit to France in June 2016: “Korea and France, as ideal partners, will open a new era through creative industries and cultural prosperity.”