Korean Companies in Southeast Asia — 2026-10-08
Korean corporate expansion in Southeast Asia accelerated this week, highlighted by KT&G’s official opening of two new tobacco plants in Indonesia and Samsung Electro-Mechanics’ confirmation of a major $5 billion chip substrate investment in Vietnam. Concurrently, LG Electronics strengthened its brand presence in Vietnam, while a massive Korean-Vietnamese consortium finalized contracts for a large-scale gas power plant.
Korean Companies in Southeast Asia — 2026-10-08
Top developments
KT&G Opens Two New Tobacco Plants in Indonesia
On October 6, 2026, KT&G (Korea Tomorrow & Global) officially opened its second and third production facilities in Indonesia, located at the Pasuruan Industrial Estate Rembang (PIER) in East Java. The company has invested approximately IDR 6.9 trillion ($440 million) to boost local manufacturing capacity and support exports to neighboring countries. This move underscores Indonesia’s growing appeal as a manufacturing hub for Korean consumer goods, moving beyond simple sales offices to full-scale industrial bases.
Samsung Electro-Mechanics Confirms $5B Chip Substrate Investment in Vietnam
Samsung Electro-Mechanics is proceeding with a plan to invest nearly $5 billion by 2028 to expand semiconductor substrate production in South Korea and Vietnam. This investment aims to elevate Vietnam’s role in the global supply chain for AI processors, with a significant portion of the funds allocated specifically to Vietnamese facilities. The project signals a strategic shift where Korean tech giants are increasingly relying on Vietnam for high-value component manufacturing rather than just assembly.
LG Electronics Wins Multiple Awards in Vietnam
LG Electronics received several prestigious awards at the "Better Choice Awards 2026" in Vietnam, recognized for its products, services, and contributions to the local innovation ecosystem. While not a direct investment announcement, this recognition highlights LG’s deepening integration into the Vietnamese market, moving beyond hardware sales to brand loyalty and ecosystem building. It reflects the success of long-term strategies by Korean consumer electronics firms in one of Southeast Asia’s fastest-growing retail markets.
Deals, expansion & investment
PetroVietnam Signs $640M Contract with Korean Consortium for Power Plant
PetroVietnam recently signed a construction contract worth approximately 16.3 trillion VND ($640 million) with a joint venture comprising Vietnamese and South Korean companies. This deal is part of a larger $1.4 billion LNG power plant project in Western Vietnam, marking a significant step in energy infrastructure cooperation between the two nations. The involvement of Korean firms in critical energy infrastructure demonstrates their expanding footprint beyond traditional manufacturing sectors.
THACO Plans to Manufacture Trains with Korean Technology
Vietnamese automaker THACO has announced plans to manufacture locomotives and rail cars domestically by transferring technology from Korean partners. Engineers from THACO will be sent to South Korea for training, signaling a new era of high-tech industrial collaboration in Vietnam’s transportation sector. This initiative aligns with Vietnam’s push to localize heavy industry and reduce reliance on imported rail equipment.
Regulation & market context
Vietnam’s FDI Surges 76% in First Nine Months of 2026
Total registered foreign direct investment into Vietnam reached $50.36 billion in the first nine months of 2026, a 76.4% increase year-on-year. This surge provides a favorable backdrop for Korean companies, who remain among the top investors in the country. The robust inflow of capital suggests that despite global economic headwinds, Vietnam continues to attract significant industrial relocation and expansion projects from Korean conglomerates.
New Fintech Sandbox Rules Ease Entry for Foreign Startups
Vietnam introduced Decree 382 on October 6, 2026, which relaxes qualification requirements for fintech startups entering the regulatory sandbox. Founders no longer need dual degrees and banking management experience if they can provide proof-of-concept demos. This regulatory shift lowers barriers for Korean fintech companies looking to expand their digital payment and lending services in the Vietnamese market.
On the radar
- Cybersecurity Vigilance: Following recent AI-linked cyberattacks on major South Korean banks (Shinhan, KB Kookmin, Hana), Korean financial institutions operating in Southeast Asia are expected to implement stricter security protocols.
- IEAE Hanoi 2026: The International Electronics and Smart Equipment Exhibition will take place in Hanoi from November 5–7, 2026, featuring over 550 booths. Korean electronics firms are likely to use this platform to showcase new supply chain partnerships.
By the numbers
- IDR 6.9 Trillion: Total investment by KT&G for its two new tobacco plants in Pasuruan, Indonesia.
- $5 Billion: Planned investment by Samsung Electro-Mechanics in chip substrates (South Korea and Vietnam) through 2028.
- 76.4%: Year-on-year growth in registered FDI into Vietnam for the first nine months of 2026, reaching $50.36 billion.
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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