Korean Companies in Southeast Asia — 2026-09-18
South Korea’s domestic banks reported a 6.4% year-on-year decline in net income for the first half of 2026, driving a strategic pivot toward Southeast Asian markets where overseas profits are hitting records. Concurrently, Vietnam’s economy is showing signs of overtaking Thailand’s in the near term, prompting Thai business leaders to urge closer supply-chain integration with their northern neighbor.
Korean Companies in Southeast Asia — 2026-09-18
Top developments
South Korean Banks
South Korea’s domestic banks reported a 6.4% year-on-year decline in net income for the first half of 2026, largely due to tighter domestic lending limits and margin pressures. This downturn has accelerated the strategic pivot of major Korean financial groups toward Southeast Asia, where higher lending margins are driving record overseas profits. The shift underscores a broader trend of Korean capital seeking yield in high-growth ASEAN markets as domestic opportunities contract.
Vietnam Economy & Thai Partnerships
Vietnam’s economy is projected to potentially overtake Thailand’s within one to two years, according to Sanan Angubolkul, chairman of the Thai Chamber of Commerce. This forecast has spurred Thai business leaders to push for deeper supply-chain ties with Vietnam, recognizing that Vietnam’s momentum in technology and exports is outpacing Thailand’s slower domestic demand. The divergence highlights the urgency for Thai firms, including those with Korean partnerships, to integrate more closely into Vietnam’s manufacturing ecosystem rather than competing solely on low-cost labor.
KEPCO (Korea Electric Power Corporation)
KEPCO has proposed participating in workforce training for Vietnam’s first nuclear power plant, aiming to build a local team for operation and maintenance. This move signals South Korea’s intent to secure a foothold in Vietnam’s emerging energy infrastructure sector, leveraging its global expertise in nuclear technology. If successful, this could open doors for broader Korean involvement in Vietnam’s energy transition projects, complementing existing investments in electronics and manufacturing.
Semiconductor & Electronics Cooperation
Vietnam’s Ambassador to South Korea, Vu Ho, emphasized that the Vietnamese Embassy will continue to facilitate connections between Korean companies and local Vietnamese ministries, industrial parks, and partners in the semiconductor and electronics sectors. This diplomatic push aims to deepen bilateral cooperation in high-tech industries, moving beyond traditional assembly roles to include R&D and chip design collaboration. It reflects Vietnam’s strategic goal to upgrade its position in the global semiconductor supply chain with Korean technological support.
Deals, expansion & investment
No recent specific deal announcements or new plant openings involving Korean companies were detailed in sources published after September 16, 2026.
Regulation & market context
McKinsey Growth Divergence: A September 2026 McKinsey report highlights a growing divergence in Southeast Asia’s economic growth, with Vietnam and Malaysia gaining momentum due to technology and export strength, while Thailand and the Philippines face slower growth from weaker domestic demand. This macroeconomic shift influences where Korean companies allocate future investments, favoring Vietnam’s dynamic manufacturing sector.
Thailand-US Trade Talks: Thailand has proposed a meeting between Prime Minister Anutin Charnvirakul and US President Donald Trump to address high tariff rates, which could impact Thai manufacturing competitiveness relative to Vietnam. Uncertainty here may prompt some foreign investors, including Korean firms, to maintain or increase exposure to Vietnam as a stable alternative hub.
On the radar
- Vietnam FTSE Upgrade: Vietnam’s potential upgrade to FTSE emerging market status is ongoing, though active foreign investors remain selective despite expected passive inflows. This could affect the cost of capital for Korean subsidiaries listed or operating in Vietnam.
- Vietnam Outbound Investment: Vietnam’s outbound investment surged 4.7-fold to $2.62 billion in the first eight months of 2026, indicating Vietnamese firms are also expanding regionally, potentially creating new joint venture opportunities or competitive pressures for Korean companies in ASEAN.
By the numbers
- -6.4%: Year-on-year decline in net income for South Korea’s domestic banks in H1 2026.
- $2.62 billion: Total outbound investment by Vietnam in the first eight months of 2026, up 4.7 times year-on-year.
- 1-2 Years: Estimated timeframe for Vietnam’s economy to potentially overtake Thailand’s, according to Thai business leaders.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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