As economic ties among Japan, South Korea and Taiwan accelerate, South Korean companies are expanding into Japan at an increasing pace. Expansion in consumer goods is particularly notable, with Samsung Electronics reportedly opening an advanced semiconductor back-end research center in Yokohama.
The investment relationship between Japan and South Korea, which had previously been centred on investment from Japan into South Korea, is shifting toward greater expansion by South Korean companies into Japan. South Korean investment in Japan reached a record high in 2025, with growth in the number of newly established entities particularly pronounced. Japan ranks among the leading destinations for South Korean companies' cumulative overseas establishment of new entities.
Direct investment between Japan and South Korea is shifting from a one-way to a two-way relationship. The ratio of South Korean direct investment in Japan to Japanese direct investment in South Korea was 0.02 at the end of 2002, but reached 0.26 at the end of 2025, indicating growth in reciprocal investment. This assessment is based on statistical data from the Bank of Korea.
South Korean companies are becoming increasingly active in Japan, particularly in consumer-related sectors. After gaining momentum in the 2000s, expansion in the 2010s came to include investments in large-scale projects, real estate and solar power plants. The number of newly established entities surged from its low in 2021, with expansion into food and food service, cosmetics and fashion reported during January–August 2026. Samsung Electronics is also strengthening its semiconductor presence in Japan through an advanced semiconductor back-end research center opened in Yokohama.