As APK returns to Seoul after 19 years, German businesses eye deeper partnerships and investment opportunities
German companies are turning to South Korea as a strategic base for manufacturing and innovation, as the two countries leverage their industrial strengths and businesses diversify supply chains amid growing geopolitical uncertainty, according to the head of the Korea-German Chamber of Commerce and Industry.
Marie Antonia von Schonburg, president and CEO of the chamber, said German companies look to Korea not just as a market for their products but as a base for manufacturing, technology development and supply chains serving markets across Asia.
“Korea is increasingly becoming more important as a market for Germany,” von Schonburg said during an interview with The Korea Herald at the chamber’s office in central Seoul on Wednesday.
“It’s not only about selling to the local market, but it’s becoming more and more about producing here, co-creating, innovating, joint R&D and serving customers not only here in Korea but also in other Asian countries.”
Her remarks come ahead of the 19th Asia-Pacific Conference of German Businesses, or APK, scheduled for Oct. 29-31 in Seoul. The event brings together about 800 business leaders and policymakers from Germany and across Asia-Pacific, who are expected to explore investment and cooperation opportunities.
German Chancellor Friedrich Merz is set to deliver a keynote speech, while senior executives from major German companies, including Siemens, BASF, DHL, Infineon, Boehringer Ingelheim and Deutsche Bank, are scheduled to speak.
Von Schonburg said the high-level gathering would provide a platform for companies to forge partnerships that could lead to investments and joint projects.
"What we hope is that in the mid and long run ... there's going to be more investment opportunities, more joint projects and just generally more interest for Korea," she said.
Seoul is hosting the biennial conference for the third time, following previous editions in 1992 and 2007, reflecting Korea’s growing importance to German businesses.
A strategic industrial fit
Korea’s draw, according to Von Schonburg, is how closely its industrial strengths complement Germany's.
“Korea is such a great fit for German industry, it’s so complementary that there has been increasing interest in seeing how we can use the advanced manufacturing, the incredibly skilled talent that we have here and great infrastructure, and the technologies of the future,” she said.
Germany’s strength in precision engineering, industrial software and automation complements Korea’s advanced manufacturing, chips, batteries and life science.
That industrial fit has become critical as German companies assess their Asian operations amid mounting geopolitical uncertainty and trade tensions involving China and the US. But von Schonburg stressed that diversification does not necessarily mean withdrawing from China.
Citing a May 2026 survey of German businesses in China by the German Chamber of Commerce in China, she noted that just 11 percent of respondents wanted to exit the market, while over 60 percent planned to increase their investments.
"It's really not stepping away from China, but it is increasingly looking into diversifying both supply chains (and) production, and really not putting all the eggs into one basket," she said.
In this diversification push, Korea is emerging as an attractive partner, backed by the two countries' already intertwined industrial supply chains. Korean automakers use German parts and sensors, while Korean displays, batteries and other technologies are featured in German vehicles.
German investments gain momentum
The relationship is also translating into greater investment.
About 540 German companies operate in Korea, employing roughly 100,000 people, and cumulative German investment reached $13.8 billion as of December 2025, according to von Shonburg.
Recent investment in life sciences underscores Germany’s commitment to Korea’s high-tech industries.
German science and technology group Merck has invested about 300 million euros in a new bioprocessing site in Daejeon, while biopharmaceutical equipment supplier Sartorius is investing around 500 million euros in a facility in Songdo expected to open early next year.
Looking ahead, von Schonburg identified industrial artificial intelligence, smart manufacturing, next-generation mobility and renewable energy as promising areas for deeper cooperation.
“There is a lot of interest from German companies in the Korean battery industry,” she said, pointing to opportunities to combine Korea’s energy storage technologies with Germany’s experience in renewable energy integration and intelligent power grids.
Regulatory hurdle, future talent
Despite the positive investment outlook, von Schonburg said regulatory uncertainty remains a challenge for German businesses in Korea.
While praising Korea’s skilled workforce, advanced infrastructure and strong industrial base, she said companies frequently struggle with rapid policy changes, unclear implementation rules and insufficient communication with regulators.
“What you need to flourish as a company on the ground is predictability,” she said. “If the goalpost is constantly shifting, I don’t know where to shoot at.”
She called for greater regulatory clarity, transparency, consistency and dialogue between policymakers and businesses before new rules take effect.
Still, she stressed that these concerns show German companies want to stay in Korea and expand their investment, rather than dissatisfaction with the market.
As head of South Korea’s second-largest foreign chambers of commerce, von Schonburg said developing the next generation of skilled workers is among her top priorities, especially as industries grapple with rapid technological change and the rise of artificial intelligence.
She hopes to expand the chamber’s German-style dual vocational training program, Ausbildung, which combines classroom education with hands-on industry experience and will mark its 10th anniversary in Korea next year.
Currently focused on automotive-related fields, the program could be extended to sectors such as mechatronics and energy, she said.
sahn@heraldcorp.com