South Korean Companies Paying Sharp Attention to Coup in Myanmar

South Korean companies in Myanmar are paying close attention to the military coup in the country.

According to the Export-Import Bank of Korea, they set up 107 local subsidiaries and branches and invested US$668 million in Myanmar from 2018 to 2020. Most of the companies are clothing and sewing companies. In 2020, 83 clothing and sewing companies entered the market.

Large South Korean companies have entered the market one after another, too. Daewoo International did so in the mid-1990s and POSCO International has run gas fields there since 2013 after acquiring the company. Samsung Electronics and LG Electronics set up local sales branches in 2013 and 2014, respectively.

Last month, POSCO International signed an engineering, procurement, construction, installation and commissioning (EPCIC) contract with Hyundai Heavy Industries for additional gas field development. In addition, the South Korean government and POSCO International are planning to enter the power generation market of Myanmar and major South Korean builders are expected to join the market entry based on official development assistance from the Asian Development Bank. However, the investment requires talks with the government of Myanmar and concerns are mounting with the government paralyzed as a result of the coup.