The National Tax Service Data Shows That The Number Of Foreign Companies In South Korea Has Reached 8,095 In 2014

by Czarelli Tuason / Oct 10, 2015 09:05 AM EDT

Foreign exchange sign in South Korea | By: Yung Yeon Je | Getty Images

A government data revealed on Thursday that South Korea's foreign businesses have increased in 2014 as many foreign companies are attracted by business opportunities within the country, reported Yonhap News Agency on Thursday.

The National Tax Service (NTS) gathered data and showed that 8,095 foreign firms are operating in South Korea in 2014 from the 8,065 count a year earlier. Foreign companies with local branches or affiliates also climbed in 2014 to 1,770 from 2013's 1,722 count, while liaison offices increased to 1,598 from 1,489 in 2014 and 2013 respectively.

"There has been a steady increase in foreign invested companies from the outset, while the number of local branches of foreign firms and liaison offices only contracted around the time of the global financial crisis of 2008," said an official.

South Korea, Asia's fourth-largest economy, was able to attract foreign companies with their numerous free trade agreements with nations, including the U.S., Europe and the Association of Southeast Asian Nations. Its budding market in logistics, manufacturing and service sectors have also contributed to the growth of foreign firms in the country.

Reuters reported on Mar. 16 that Philippines' Bloomberry Resorts Corp. is planning on buying an island and a casino operator in South Korea to establish their firm on a different market outside of the Philippines.

"We are now slightly shifting our focus to other destinations," said Bloomberry Chairman Enrique Razon. "Although this will happen in the next few years, it is good business to start prospecting, and Korea is a likely choice because of its positive investment climate."

Meanwhile, despite the growing number of foreign companies in South Korea, the country's foreign exchange bank deposits dropped for the fifth consecutive month putting them at its lowest in September at $59.19 billion, noted Reuters on Wednesday.

Yuan deposits have been sluggish as public firms and non-financial companies deposited dollars in various accounts for future payments. Dollar bank deposits have reportedly increased for the fourth consecutive month by $0.76 billion putting it at its highest record at $43.47 billion in September.

By the end of September, dollar deposits have accounted for 73.4 percent of the total foreign exchange deposits, while yuan accounted for 15.9 percent.