Incentives for FDI planned to counter the slowdown

Korea plans to expand incentives for foreign direct investment (FDI) in Asia’s fourth-largest economy as part of measures to cope with growing uncertainties stemming from the escalating trade dispute between the United States and China, the Ministry of Trade, Industry and Energy said Thursday.

Korea received $26.9 billion worth of FDI commitments in 2018, up 17.2 percent from a year earlier, according to the ministry. It was the fourth consecutive year it surpassed the $20 billion mark.

However, setting yet another record this year could be challenging amid the growing U.S.-China trade friction.

In July, Japan began regulating exports to Seoul of industrial products crucial to the production of chips and displays, casting cloud over Korea’s technology businesses.

To beef up the amount of FDI arriving here amid the trade disputes, the Industry Ministry said it will expand cash incentives for companies making investment in the parts, materials and equipment sectors.

“We need to guarantee that all foreign firms that made investment pledges here, even those from Japan, face no hurdles in rolling out their businesses,” an official from the Industry Ministry said.

Yonhap