"Resilience Is an Insurance Premium for Corporate Survival"... Korean and German Leaders Propose Joint Financing in Third-Country Markets

19th APK panel discussion on "Corporate Finance in Asia"
South Korea's advanced FX market and fiscal soundness seen as competitive strengths
"Localized financing is the answer amid supply-chain risks"

The cost of raising capital globally is surging amid geopolitical conflicts and massive investment in artificial intelligence (AI) infrastructure. Experts say companies restructuring their supply chains need to secure “localized financing” and “selective resilience” to prevent financial losses. South Korea’s more advanced foreign exchange market and sound fiscal health were cited as key foundations for maintaining the competitiveness of Korean companies’ financing.

On October 31, the second day of the 19th Asia-Pacific Conference of German Business (APK 2026), a discussion titled “Corporate Finance in Asia: Thriving Amid Geopolitical Risks” wrapped up the morning session at the Grand InterContinental Seoul Parnas Hotel in Gangnam-gu, Seoul. The panel focused on corporate survival strategies amid rapidly changing global capital markets. Participants included Alexander von zur Mühlen, CEO for APAC and EMEA at Deutsche Bank; Jang Beomsik, CEO of The Asia Business Daily and former president of Soongsil University; and Nicolaus Wolze, head of thyssenkrupp in Korea, Japan and Australia.

Jang Beomsik, CEO of The Asia Business Daily, speaks during a discussion at the 19th Asia-Pacific Conference of German Business (APK 2026), held at the Grand InterContinental Seoul Parnas in Gangnam-gu, Seoul, on the 31st. From left: Alexander von zur Mühlen, CEO for APAC and EMEA at Deutsche Bank; Jang; and Nikolaus Bolze, head of Thyssenkrupp in Korea, Japan and Australia. Photo by Kim Jinyoung.

Von zur Mühlen, Deutsche Bank’s global CEO, said that capital-raising costs are rising as countries increase defense spending, run fiscal deficits and expand AI infrastructure. “Supply-chain diversification leads to higher costs, greater complexity and lower profitability, and is coinciding with increased defense spending by governments,” he said. “On top of that, the AI boom has driven up financing needs. Debt issued for AI-related infrastructure financing has already exceeded $500 billion, or approximately 668 trillion won.”

He said, however, that this period of rising capital costs presents new opportunities for South Korea. “The South Korean government’s policies to advance the foreign exchange market have enabled foreign investors to hold and settle transactions directly in won, deepening the won-denominated financial market,” he said. “Even as geopolitical friction drives up financing costs around the world, Korean companies now have a competitive advantage that could allow them to secure financing at relatively lower costs.”

As a financial safeguard for companies expanding overseas, he recommended raising funds in local currencies. “In the past, companies raised funds at low interest rates in their home markets and remitted them to overseas subsidiaries. But, as the situation in Russia showed, they faced the dire prospect of being left with debt at home while their assets were frozen in foreign jurisdictions,” he said. He added that “localizing financing”—raising funds or managing risks where overseas operations are based—has become the top priority for CFOs and finance teams.

Jang described the cost of building resilience in finance and supply chains as an “insurance premium.” “Securing alternative suppliers, holding extra inventory, keeping credit lines open for emergencies and hedging foreign exchange risk all entail real costs,” he said. “Korean companies are already paying that premium by diversifying their markets, supply chains and debt maturities.”

Noting that South Korea and Germany share interests in semiconductors, batteries, clean energy and industrial AI, Jang also proposed jointly entering third-country markets. “To achieve tangible results, the two countries should select several concrete projects and combine private capital, government funding and official export credits (ECAs), such as those provided by the Export-Import Bank of Korea, to pursue joint entry into third-country markets such as Southeast Asia,” he said.

Wolze outlined three principles for corporate survival: diversification, selective localization and maintaining global connectivity. “Companies need to diversify their key supply chains and sources of financing, and always have a ‘Plan B’ in the drawer,” he said. “Resilience stripped of openness can easily turn into costly protectionism that undermines corporate competitiveness.”

This content was produced with the assistance of AI translation services.