Korean Middle Market Companies Explore Investment Opportunities in Virginia

The middle market enterprise sector shared challenges related to external uncertainties due to the Trump administration’s tariff policies and explored strategies for local expansion in the United States.

The Federation of Middle Market Enterprises of Korea (FOMEK) announced on June 13 that it held an investment consultation meeting with the Virginia Economic Development Partnership (VEDP) at The Westin Josun Seoul in Jung-gu, Seoul on June 12.

This investment consultation meeting served as a forum for discussing the challenges faced by middle market enterprises due to U.S. reciprocal tariff policies and lack of local information. FOMEK member companies discussed strategies for expansion in the U.S. state of Virginia, which offers a business-friendly environment and investment incentives.

The participants in the event included Park Il-dong, chairman of DSEC, executives from Samjin Elecs and PNS Networks, Antia Abshoff, deputy representative of the Virginia Economic Development Partnership, and Park Eun-young, director of the Virginia State Government’s Korea Office..

Virginia is home to the largest data center in the United States and is a hub for cutting-edge industries such as information and communications technology (ICT) and aerospace. Major Korean ICT and defense companies, including Samsung SDS, Hanwha, and KAI, have established operations there.

The consultation meeting included presentations on Virginia’s investment environment and incentives, as well as industrial clusters in Danville City and Chesterfield County by the Virginia delegation.

Antia Abshoff, deputy representative of the Virginia delegation, emphasized, “Virginia is a logistics hub on the Atlantic coast, home to Norfolk Port, the 5th largest port in the United States by cargo volume in 2023, and an optimal business complex with the 4th highest number of excellent STEM (Science, Technology, Education, Mathematics) research personnel in the U.S. Based on stable support systems such as a low corporate tax rate of 6%, tax credits for research and development (R&D) investments, and exemption of data center usage fees, it can be the optimal base for Korean middle market enterprises to enter the North American market.”

Park Il-dong, chairman of DISEC and senior vice chairman of FOMEK, stated, “Recently, representatives from General Dynamics, a global defense company located in Virginia, visited our headquarters and conducted in-depth discussions on strengthening technical cooperation for 4 nights and 5 days. We will accelerate expansion into the North American market through business innovation based on artificial intelligence (AI) and eco-friendly technologies while flexibly responding to changes in U.S. tariff policies.”

Kang Seung-ryong, FOMEK managing director, said, “We will actively support middle market enterprises to effectively respond to rapid changes in the trade and commerce environment and continue to grow in the global market by expanding networks with major countries where middle market enterprises hope to enter.”