German Companies Target South Korea as Manufacturing and Innovation Hub, Chamber Says
The Korea-German Chamber says German firms are increasingly using South Korea as a base for production, R&D and regional supply chains.
At a press interview in Seoul, Marie Antonia von Schonburg said German firms are turning to South Korea for manufacturing, technology development and supply-chain hubs that reach across Asia. The shift reflects a strategic diversification amid geopolitical tensions, with firms seeking to avoid over-reliance on any single market while still maintaining a presence in China. One outlet Asia-Pacific Conference of German Businesses, scheduled for Oct. 29-31, will host roughly 800 executives and policymakers, including German Chancellor Friedrich Merz, to discuss joint projects and investment pipelines.
Recent German investments include Merck’s €300 million bioprocessing site in Daejeon and Sartorius’s €500 million facility in Songdo, underscoring interest in life-science and battery sectors. While praising Korea’s skilled workforce and infrastructure, von Schonburg warned that unpredictable regulatory changes could hinder expansion, calling for clearer rules and stronger dialogue with authorities. She also highlighted plans to broaden the German-style dual vocational training program in Korea to new high-tech fields.
Why it matters
German firms see South Korea as a key hub for diversifying production and tech partnerships across Asia.
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