New Zealand is very welcoming and open to foreign investment as reflected in a few recent deals between New Zealand business/government and Korean conglomerates.
Leading Korean firms such as Hansol Forem, Daesung Group, KNC Construction (formerly Daeju Group) and Ottogi Corporation have already made substantial investments in New Zealand.
Other Korean investment in New Zealand includes property, hides and skins, tourism, timber, food processing, fisheries and small businesses. New Zealand wireless charging start-up PowerbyProxi secured $4 million in funding from the venture capital arm of Samsung and is now on the fast track to success. An article on this matter may be found at: New Zealand Trade & Enterprise: Kiwi Firm Powers Up with Korean Tech Giant
Last year SK Telecom signed an MOU with Spark New Zealand (formerly Telecom New Zealand) for co-operation in business and technology relating to the Internet of Things (IoT) industry. An article on this matter may be found at: SK Telecom Signs Deal with a New Zealand Telecom (Spark New Zealand). Lotte is, also, looking to expand its presence in New Zealand and the Korean small business community has been very active in investment in New Zealand.
New Zealand companies have, also, capitalized on opportunities in Korea. New Zealand companies with a presence in Korea include Fonterra Co-operative Group Limited, Zespri International (Asia) Limited, Velexco Korea Limited and New Zealand Natural Limited. There is significant untapped potential for both Kiwi and Korean businesses and the soon-to-be ratified New Zealand-Korea FTA will, likely, greatly benefit market perceptions and investor confidence, leading to more new business opportunities and collaborations.
In fact, retail businesses of the two countries signed commercial agreements in herbal medicine and darts right after the signing of the FTA: Deer Industry New Zealand and Korea Ginseng Corporation signed a partnership agreement involving products containing antler velvet from New Zealand deer; and a distribution agreement was made between DartsKorea and New Zealand’s Puma Darts Limited in which the two companies will work together for joint export of New Zealand darts and dartboards paired with Korean accessories to some 70 countries.
We expect and look forward to seeing further exciting and progressive development in investment and collaboration between New Zealand and Korea.
by Letitia An (NZ & NSW Barrister & Solicitor). Associate IPG Legal
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- Legal/Compliance Checklist for your Korean Company: Top 7 Things to Do Before you Do Business in Korea