Cambodia’s New Investment Law: Tax Incentives and Macroeconomic Stability Attract Korean Investors

SEOUL — His Excellency Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), chaired and delivered a keynote address at the “Incheon-Cambodia Investment Promotion Forum 2026” on the afternoon of June 16, 2026, in Seoul, South Korea.

The forum was organized in close cooperation between the CDC and the Incheon Chamber of Commerce and Industry (ICCI), with the participation of a large number of investors and representatives from leading South Korean companies.

📜 New Investment Law: An Attractive Incentive Package

On this occasion, His Excellency the Deputy Prime Minister reaffirmed the Royal Government of Cambodia’s strong commitment to welcoming and facilitating Korean investors. His Excellency emphasized that under the umbrella of Cambodia’s New Investment Law, investors will benefit from:

BenefitDescription
A Comprehensive Incentive PackageProfit tax exemption for up to 9 years, exemption from import duties on equipment and materials, and various other tax reductions
Attractive Fiscal BenefitsCorporate income tax rate of 20% (reducible to 15% for priority projects)
Macroeconomic StabilityLow inflation, stable exchange rates, and sufficient international reserves
Investment Protection MechanismsProtection against expropriation without compensation and dispute resolution through international mechanisms

Economic Perspective: This new investment law is designed to attract further Foreign Direct Investment (FDI) by providing a transparent and reliable business environment.

🇰🇷 Incheon-Cambodia Investment Forum: Opportunities for Korean Investors

This forum was strategically organized to showcase and promote Cambodia’s rich investment potential, business opportunities, and favorable reform environment to the Korean business community.

Target SectorPotentialOpportunities for Korean Investors
Manufacturing & IndustryCompetitive labor costs and preferential trade agreementsEstablishing electronics parts and machinery factories
InfrastructureMajor infrastructure projects (roads, ports, airports)Participation in construction and financing projects
Agriculture & Food ProcessingCambodia is an agricultural country with strong potentialInvestment in agro-processing and cold chain logistics
Clean EnergyRising energy demand and renewable energy policiesInvestment in solar, wind, and biomass energy
Digital & TechnologyLarge youth population and high mobile penetrationInvestment in FinTech, EdTech, and digital infrastructure

Cambodia-Korea Economic Cooperation

During the forum, Mr. Kim Sung Soo, Chairman of the Korean Chamber of Commerce in Cambodia (KOCHAM), and Mr. Chung Myung Gyu, President of the Korean Association in Cambodia, shared their successful experiences and provided guidance for investing in Cambodia.

Following this, His Excellency Lim Visal, Deputy Secretary General of the Cambodian Investment Committee at the CDC, provided key information about Cambodia’s investment environment. The forum concluded with a Q&A session, during which His Excellency the Deputy Prime Minister answered questions and clarified concerns from Korean investors and businesspeople.

💡 What Investors and Civil Servants Should Know

Key PointImpact/Opportunity
New Investment LawOffers attractive tax incentives and high-level investment protection
Macroeconomic StabilityA favorable environment for long-term investment
Cambodia-Korea RelationsOpportunities to expand business and create new partnerships
Priority SectorsManufacturing, infrastructure, agriculture, clean energy, and digital technology

❓ Frequently Asked Questions (FAQ)

Q: What benefits does Cambodia’s new investment law offer to foreign investors?
A: The law provides a comprehensive incentive package, including profit tax exemption for up to 9 years, exemption from import duties on equipment, and transparent investment protection.

Q: Which sectors is Cambodia focusing on to attract investment?
A: Priority sectors include manufacturing and industry, infrastructure, agriculture and food processing, clean energy, and digital technology.

Q: What is the current state of economic cooperation between Cambodia and Korea?
A: Cambodia and Korea have a strong economic relationship, with a Free Trade Agreement (FTA) and significant Korean investment in various sectors.

Q: Is Cambodia’s macroeconomic stability strong enough for long-term investment?
A: Yes. Cambodia has low inflation, stable exchange rates, and sufficient international reserves, making it attractive for long-term investors.

The “Incheon-Cambodia Investment Promotion Forum 2026” concluded with fruitful results and garnered significant interest from the Korean business community. This is a testament to the strong cooperation between the CDC and ICCI in elevating bilateral economic relations between the two countries to a new level, paving the way for a new wave of investment from the Republic of Korea to Cambodia in the near future.

Thank you for peace!

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