ABSTRACT
In the 1950s and 1960s, South Korea posed several political, social, and economic risks that could have deterred German companies from entering its market. These risks included domestic political instability, the threat from North Korea, a small and unpredictable domestic economy, and strong economic ties to the United States. Despite these challenges, some large German chemical and pharmaceutical companies, such as Hoechst, became active in Korea. This chapter examines the early Korean-German business cooperation in the Korean pharmaceutical industry, focusing on the partnership between Hoechst and Korean firm Handok and the establishment of Bayer Pharma Korea. It explores how German companies mitigated political and financial risks through cooperation with both state and non-state actors, including securing investment and export guarantees from the German government. While legal frameworks and agreements between the two countries provided additional security, the Korean government's ambivalence – promoting foreign investment while restricting foreign company applications – prompted strategic adjustments by German firms like Hoechst and Bayer.
