South Korean investors seek clarity on IP lease extensions

In mid-November, a group of South Korean enterprises submitted documents to the Korean Chamber of Commerce in Vietnam (KoCham), highlighting the difficulties they face in securing extensions for their operations within industrial parks (IPs).

With industrial land leases or project terms approaching expiration, the absence of mechanisms for continued operation could force these companies into difficult decisions, including scaling back or withdrawing from the Vietnamese market. This situation leads to losses for the enterprises from a sustainable development perspective and could weaken confidence in Vietnam’s overall investment environment.

"To address this issue, we respectfully propose that enterprises whose terms have expired be provided with guidance and allocated alternative land within the same or nearby IPs," said Ko Tae Yeon, chairman of KoCham. "We also recommend that a formal mechanism be established to permit contract extensions for enterprises that meet specific conditions, thereby enabling them to continue their operations stably and sustainably,"

“In particular, we suggest that priority for such extensions be granted to enterprises that have contributed to Vietnam's economic development since the early 1990s, as well as those that have demonstrated a strong commitment to long-term investment in the country,” he added

In the first 10 months of 2025, South Korea was one of the top foreign investors in Vietnam with $627 million, accounting for 4.5 per cent of the total.

Vietnam is host to several major technology giants from South Korea, including Samsung and LG. Samsung Electronics had invested $23.2 billion in Vietnam by mid-February this year, making it the largest foreign investor in the country. The number of Vietnamese vendors in the Samsung Vietnam ecosystem has reached 306.

LG's key plants in Vietnam, namely LG Innotek Vietnam Haiphong, LG Electronics Vietnam Haiphong, and LG Display Vietnam Haiphong, recorded a total revenue of 10.3 billion in 2024, up over 9.6 per cent on-year.

Minister of Finance Nguyen Van Thang strengthened regional economic ties through a series of high-level meetings on the sidelines of the APEC Finance Ministers' Meeting in South Korea.

An increasing number of South Korean entrepreneurs are turning their attention to Vietnam, believing in the country's economic growth potential and its goals for green and low-emission agricultural development.

Jaewon Hwang, head of Citi Commercial Bank Korea, shared with VIR 's Huong Thuy the way Citi facilitates trade and investment between the Vietnam and Korea, especially for medium-sized corporates.

Hanwha Life, a South Korean life insurance company, hosted a five-day training course in South Korea from November 10-14 for 30 fintech students from Vietnam as part of its global corporate social responsibility (CSR) initiative FuturePlus.