Investment

KITA Opens Global Office in Texas

Asia Korea

On June 2nd, the Korea International Trade Association (KITA)—the largest business organization in South Korea—opened a global office in Plano, Texas. The office will work to increase economic relations between South Korea and Texas and support Korean businesses in the western region of the United States, marking a new milestone in South Korea-Texas relations.

The new Dallas Korea International Trade Association (KITA) office both celebrates and cements Texas’ importance to South Korean businesses operating in the US. This office is set to oversee support for Korean businesses operating in the south, central, and western regions of the US, from its base in Texas all the way to California. According to KITA, the office plans to provide local market information and offer fresh business opportunities in both countries to help boost investment in Texas and surrounding regions.

Established in 1946 to advance the Korean economy through international trade, the KITA is the largest business organization in South Korea with over 73,000 member companies. The association works to further the interests of the business community through avenues such as foreign investment, trade infrastructure, and bilateral trade cooperation. KITA has a network of 13 regional centers and 12 overseas centers, with two other US centers in New York City and Washington DC.

The KITA Dallas Office

The new office in Dallas officially opened on June 2, 2024, with an opening ceremony of around 50 guests, including Representative Beth Van Duyne, KITA Chairman Jin Sik Yoon, Texas Secretary of State Jane Nelson, and Jung Young-ho, the Consul General of the Republic of Korea in Houston.

As stated by Chairman Yoon, the Dallas office will be a crucial part of “strengthening collaboration between Korean firms and their US counterparts” and Texas actors seems to agree. The day of the opening ceremony, the City of Plano Economic Development Department stated on LinkedIn that the new center “marks an important milestone in [their] continued efforts to foster international relations and economic growth” and that Plano’s “vibrant and flourishing economic landscape” will further this boost trade and investment between Texas and South Korea. Given that Plano, Texas is already home to Korean companies such as Samsung Electronics America, SK signet America, and Doosan Robotics, this new center can only further this strong economic relationship.

Korean Economic Influence in Texas

Even before the Dallas KITA office, South Korea and Texas have been long-term economic partners. As Chairman Yoon stated during the ceremony, “Texas is an advantageous investment destination for multinational corporations, with minimal business regulations and no personal or corporate income taxes”, which have been crucial in enticing South Korean companies for years. Some companies that have flocked to Texas beyond the aforementioned three include DongAh, EP Energy, HF Controls, and Hyundai with many more scattered throughout the state.

Following these investments, South Korea stands as Texas’s fourth largest export market as of 2021 with $18.6 billion in exports. Additionally, South Korea is Texas's sixth-largest import source with $5.8 billion in imports. All in all, the bilateral trade volume in 2023 amounted to approximately $32 billion. With these numbers, it is not surprising that by April 2024, 270 South Korean companies were in Texas, making it the state with the second-highest number of Korean businesses only after California.

These new assurances in this South Korea-Texas economic partnership are in line with Texas Governor Greg Abbott’s statement on June 8th at the US Embassy in the Republic of Korea stating that “Texas and South Korea are critical economic partners in the growing economies of the 21st century.” After this speech, he attended a KITA luncheon with businesses leaders from across South Korea. The presence of the new Dallas KITA office, as well as efforts from Texas actors to create people-to-people ties within South Korea and with KITA further cements the fact that South Korea and Texas have a strong economic partnership that will continue for the foreseeable future.

Jiwon Lim is a Summer 2024 Young Professional at the East-West Center in Washington. She is a rising first year at Johns Hopkins School of Advanced International Studies pursuing an MA in International Relations with a functional focus in Security, Strategy, and Statecraft and a regional focus in Asia