By Anne Su

The Korean Air office on Wilshire Boulevard is part of the Wilshire Grand Hotel. Korean Air Lines Co. announced in 2009 its plans to demolish the hotel and build a high-rise office in its place. Photo: Korean Slate
K-pop and kimchi tacos aren’t the only bits of Korean culture in the United States: South Korean businesses are stepping up and investing in a rich, multicultural city like Los Angeles.
Korean Air Lines Co. is constructing a hotel, office and retail complex valued at $1 billion on the site of the Wilshire Grand Hotel. Hyundai Motor Co. recently invested $150 million to upgrade its Orange County facilities.
Annually, small- and midsize Korean companies are contributing to the tens of millions of dollars that flow into the Southern California economy. This is the latest trend of Korean investors wishing to traverse the cultural bridge that joins Los Angeles and Seoul.
According to California Watch, there are more than half a million South Koreans with strong business ties to their home country in the Los Angeles area. Almost $16 billion worth of goods were traded between South Korean and Southland ports in 2009.
“With its juggernaut export economy, South Korea is flush with cash. Its trade surplus for July 2010 was $5.6 billion. And some of that money is coming to California,” said Edward Park, a sociologist at Loyola Marymount University specializing in Asian American studies, to the Los Angeles Times.
The growth of South Korean businesses stems not only from efforts by the local and state governments of California but also by U.S. immigration policy. Beginning in 2008, the federal government no longer demanded visas from visiting South Korean citizens, thus giving a boost to South Korean investments.
Analysts point out that it is more likely that foreign investors send initial cash outlays to places with a personal or cultural connection.
Only recently did South Korea amend its law of foreign investments on high technology businesses. Besides small- to middle-sized businesses seeking opportunities, all kinds of Korean capital venture funds are interested in biotech and high-tech partnerships in California.
On January 24, the U.S. Chamber of Commerce launched a lobbying campaign for a U.S.-Korea Free Trade Agreement in Los Angeles. Southern California undoubtedly would be the major beneficiary. This would be further encouragement from the U.S. to increase trading and establish deeper bonds with South Korea.









