The reception, held at the Four Seasons Hotel in central Seoul, brought together government officials, diplomats, business leaders, academics, cultural figures and youth representatives to celebrate the longstanding ties between the two countries.
The princess said she was "pleased" to visit South Korea "for the fourth time," adding that each visit had deepened her understanding of the country.
She also praised South Korea's rapid development, saying she had been "impressed" by the country's transformation over the years.
Highlighting the long-standing ties between the two countries, she stressed the importance of bilateral relations and called for continued efforts to deepen cooperation in various areas including maritime cooperation.
As part of such efforts, Anne visited HD Hyundai Heavy Industries' shipyard in Ulsan and toured its facilities earlier in the day.
Recalling the late Queen Elizabeth II's visit to Andong in South Korea in 1999, she described it as an example of the longstanding people-to-people ties that underpin bilateral relations, adding that future cooperation should continue to be built on mutual respect, innovation and a willingness to learn from one another.
Tuesday night's reception also featured members of K-pop girl group NMIXX, who have been promoting the British Embassy in Seoul's campaign for girls' empowerment.
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