Korea rises as strategic hub for German firms: KGCCI chief

The Asia-Pacific Conference of German Businesses, or APK, is a biennial gathering for German companies, policymakers and business leaders from Germany and the Asia-Pacific region. It creates a forum to discuss investment, partnerships and cooperation. The 19th conference is scheduled for Oct. 29-31 in Seoul.

Around 800 participants are expected. German Chancellor Friedrich Merz will give a keynote speech, while executives from Siemens, BASF, DHL, Infineon, Boehringer Ingelheim and Deutsche Bank will speak. These participants can use the event to identify joint projects and investment opportunities.

Seoul previously hosted the APK in 1992 and 2007. Its return after 19 years highlights Korea’s rising importance to German businesses. The chamber hopes the gathering will produce more investment, joint projects and broader interest in Korea over the medium and long term.

Germany already has a substantial business footprint in South Korea. About 540 German companies operate there, and they employ roughly 100,000 people. This shows that the relationship extends well beyond selling imported products. German firms are established employers and investors within Korea’s industrial economy.

Investment is also significant. According to Marie Antonia von Schonburg, cumulative German investment in Korea reached $13.8 billion as of December 2025. Recent projects show continued commitment to advanced sectors. Merck invested about 300 million euros in a Daejeon bioprocessing site, while Sartorius is investing around 500 million euros in Songdo.

The existing scale gives future cooperation a strong base. German companies can build on local talent, infrastructure and industrial connections. The chamber expects deeper partnerships to generate more investment, joint projects and interest in Korea, especially in high-technology industries.

Seoul’s 2026 APK is significant because it is the city’s third time hosting the biennial conference. Earlier editions took place there in 1992 and 2007, so this meeting returns after 19 years. The event brings together about 800 German and Asia-Pacific business leaders and policymakers.

The timing reflects Korea’s expanding role in German business plans. German companies increasingly view Korea not only as a market, but also as a place to manufacture, develop technology, conduct joint research and serve customers across Asia. The conference offers a concentrated setting for those discussions.

Its return does not by itself guarantee new projects. However, the Korea-German Chamber expects more investment opportunities, joint projects and interest in Korea over the medium and long term. Hosting the event again signals that Korea’s industrial capabilities now matter strategically to German businesses.

German companies see South Korea as more than a sales destination. They view it as a strategic base for manufacturing, technology development, joint research and supply chains serving other Asian markets. This matters because companies can combine capabilities from both countries instead of relying on one side alone.

The industrial fit is the key mechanism. Germany brings strengths in precision engineering, industrial software and automation. Korea offers advanced manufacturing, skilled talent, strong infrastructure, chips, batteries and life science. Their supply chains are already connected: Korean automakers use German parts and sensors, while German vehicles feature Korean displays, batteries and other technologies.

That foundation supports deeper cooperation in industrial artificial intelligence, smart manufacturing, next-generation mobility and renewable energy. German firms also see opportunities in Korean batteries, paired with German experience in renewable-energy integration and intelligent power grids. These links could help Korea serve as a wider Asian platform.

If German firms deepen their Korean partnerships, the likely result is closer cooperation across investment, manufacturing, innovation and supply chains. The chamber hopes the APK will lead to more investment opportunities and joint projects. These activities could strengthen connections between German industrial expertise and Korean technology.

The article gives concrete examples already under way. Merck invested about 300 million euros in a Daejeon bioprocessing site, and Sartorius is investing around 500 million euros in a Songdo facility. Other possible areas include industrial artificial intelligence, smart manufacturing, next-generation mobility and renewable energy. Battery cooperation could pair Korean storage technology with German grid experience.

The broader effect would be a more distributed production network. German companies could make products, develop technologies and serve Asian customers from Korea. This would not necessarily replace existing operations elsewhere, but it could reduce overconcentration and create new partnerships, jobs and industrial capacity.

South Korea can help German companies diversify by adding production, research and supply-chain capacity outside China. This gives firms another location for serving Asian customers and developing technology. It does not require them to abandon China, a market where many companies still plan to expand.

The article cites a May 2026 survey of German businesses in China. Only 11 percent of respondents wanted to exit, while more than 60 percent planned to increase investment. The stated approach is therefore to spread supply chains and production across locations rather than put all the eggs in one basket.

Korea is suited to this role because its industries already connect with German companies. Korean automakers use German parts and sensors, while German vehicles use Korean displays, batteries and other technologies. These existing links can make a second base easier to develop while China operations continue.

A global supply chain is the connected system through which companies source parts, make products, develop technology and reach customers across different countries. It can include suppliers, factories, research sites and distribution networks. German firms are considering Korea as one part of such a system, not necessarily as a replacement for China.

The reason is concentration risk. If production or sourcing depends too heavily on one country, geopolitical uncertainty, trade tensions or other disruptions can affect the whole operation. The article describes this strategy as avoiding putting “all the eggs into one basket.” Korea offers another base for manufacturing, innovation and Asian sales.

This approach is diversification rather than withdrawal. The cited China survey found that over 60 percent of respondents planned to increase investment there, while only 11 percent wanted to exit. German companies can therefore retain Chinese operations while building Korean partnerships and spreading supply-chain exposure.