FDI in Seoul reaches pre-2008 levels

Foreign direct investment in Seoul surged to the largest volume last year since the 2008 global financial crisis, on the back of a huge inflow from Japan and the increase in mergers and acquisitions, data showed yesterday.

The total amount of new FDI pledged to Seoul last year came to $5.81 billion, up 41.3 percent from 2011, according to the Seoul Metropolitan Government. The sharp increase is attributed to active investment by the Japanese who increased their investment by 166.6 percent.

It is the biggest annual amount since $6.46 billion recorded in 2008, the city government said.

Also, investments in mergers and acquisition-related deals jumped by 201.3 percent to record $2.78 billion in 2012, due to growing confidence of foreign investors in the Korean economy following a rise in the national credit ratings, it said.

By region, the FDI inflows from Asia, including Japan, more than doubled to $3.22 billion, followed by investment from Europe with $1.55 billion, it said. Those in the continental American region also increased their investment by 60.4 percent to reach $1.03 billion.

Investment in the service industry jumped by 82.1 percent in 2012 from a year earlier, while the apparel industry drew $1.03 billion of foreign investment, up 169.8 percent from the same period last year, the data showed.

Yonhap