Bilateral relations

The strong bilateral relationship between Luxembourg and South Korea has been shaped by the unbreakable bond forged during Luxembourg’s participation in the Korean War. Luxembourg and South Korea established diplomatic relations in 1962 and established resident embassies in their respective capitals in 2023/2024.

Today, the Republic of Korea and Luxembourg are partners united by their shared commitment to a rules-based international order grounded in the principles and purposes of the United Nations Charter, as well as through the economic partnership and potential that exists between two countries surrounded by larger neighbors and punching above their economic weight. Growing scientific and cultural collaboration as well as people-to-people exchanges offer other promising avenues for future cooperation.

 An unbreakable bond

On June 27, 1950, the United Nations Security Council recommended that its member states provide the Republic of Korea with the necessary assistance to repel the North Korean army's aggression. Sixteen countries answered the call and decided to come to South Korea’s aid by sending armed forces; Luxembourg was among them. The Belgian detachment, which included the Luxembourg contingent, arrived in Korea on January 31, 1951, where it was attached to the US 3^rd Infantry Division. The first Luxembourg contingent, comprising 43 volunteers, was commanded by Lieutenant Jos Wagener and remained until September 30, 1951. The second Luxembourg contingent, under the command of Lieutenant Rudy Lutty, consisted of 46 volunteers. He took over on March 24, 1952, and remained until early 1953. Belgian and Luxembourg volunteers distinguished themselves in the fighting at the Battle of the Imjin River (1951), the Battle of Haktang-ni (1951) and the Battle of Chatkol (1953).

Eighty-five Luxembourg volunteers fought alongside the armed forces of the Republic of Korea, two of whom were killed in action (Sergeant Robert Mores and Corporal Roger Stutz), and 16 were wounded. The participation in the Korean War was the only Luxembourg military intervention after 1945, outside of peacekeeping missions, in which Luxembourg sent soldiers to the front.

Economic, trade and financial relations

Believing in Korea’s economic strength and in the economic potential between Luxembourg and South Korea, a Luxembourg Trade and Investment Office (LTIO) was established in Seoul in 1997, and is now integrated in the Embassy.

As the world's 12^th largest economy and Asia's 4^th largest with a GDP of USD 1.88 trillion, and being among the world's largest exporters and importers, South Korea is a member of the G20, despite having been considered one of the least developed countries in the world in the aftermath of the Korean War. Through an impressive economic development known as the Miracle on the Han River, its economy has since become one of the most open and competitive globally.

The economic partnership between South Korea and Luxembourg has grown over the years and still bears a lot of untapped potential, including in the financial and service sectors. Luxembourg can offer an ideal testbed to Korean companies for their European market entry, especially in sectors such as: ICT, AI, quantum technologies, data, finance and fintech, space, cybersecurity, health technologies, automotive and logistics.

Several Luxembourg companies are directly or indirectly active in South Korea, such as ArcelorMittal, Paul Wurth, IEE, Secalt, Genii Capital, Jan de Nul, Chemservice Asia, Waagner Biro, Ceratizit, and SES. Cargolux, Luxembourg’s flag carrier cargo airline, operates three weekly flights to Incheon airport. Rotarex opened a production factory in Korea producing, among others, valves for the semiconductor industry.

An increasing number of Korean companies are setting up a presence in Luxembourg in order to penetrate the European market and its 450 million customers. These include industrial companies such as Hyosung, Samwha Steel, Solus Advanced Materials (Circuit Foil) and Kiswire International. Korean tech companies are increasingly leveraging Luxembourg’s innovation-driven ecosystem and cross-border oriented business environment to develop their European presence, such as Contec (space), Data Design Engineering (AI), VSION (liquid crystal solutions), Codepresso (software solutions), Naru Security/CyberExM (cybersecurity), and Hopae (digital identity and authentication). Korean startups are participating in large numbers in Luxembourg’s flagship economic and innovation events such as Nexus Luxembourg and the Luxembourg Venture Days and several of them have been selected in the Fit 4 Start acceleration program.

In the financial sector, the vast potential that exists between South Korean and Luxembourg offers many opportunities to Korean asset managers, banks, insurance companies and fintechs. The potential offered by Luxembourg’s financial center is illustrated by the bond listings on the Luxembourg Stock exchange (LuxSE) by Korean issuers, which have totaled over €17 billion through 23 listings since 2024. The LuxSE is recognized as a "Major Overseas Market" by the Korean regulator. Opportunities for Korean fintechs and payment firms also abound in Luxembourg.