Foreign direct investment pledges to Korea hit all-time high

Finance

Published: 04 Oct. 2023, 18:39

Foreign direct investment pledges to Korea hit all-time high

President Yoon Suk Yeol, center, speaks during a ceremony in Paris on June 21, 2023, where a group of European companies announced plans to make investments in Korea. [YONHAP]

Foreign direct investment (FDI) pledges to Korea rose 11.3 percent on-year during the first nine months of this year to reach an all-time high on growing investment in chips, batteries and other advanced sectors, the industry ministry said Wednesday.

The country received $23.95 billion worth of FDI commitments during the January-September period, compared to $21.52 billion a year earlier, according to data from the Ministry of Trade, Industry and Energy.

This year's figure marked the highest amount ever for any nine months of data.

The amount of investment that actually arrived in South Korea also went up 20.2 percent on-year to a record high of $13.92 billion, the data showed.

"Despite global uncertainties, the country saw an increase in foreign investment in advanced sectors such as semiconductors and secondary batteries, which is expected to help strengthen supply chains at home and create more jobs," the ministry said in a release.

By industry, FDI pledges in the manufacturing sector grew 15.7 percent on-year to $9.02 billion, as foreign investment in the electronics and electric fields surged 27 percent to 3.32 billion while that of the chemical engineering field soared 61.1 percent to $3.01 billion.

The service sector also saw a 9.0 percent on-year rise in FDI pledges to come to $13.8 billion in the January-September period, led by the financial and accommodation fields, according to the ministry.

By investors, the United States vowed to make $5.19 billion worth of investments, down 27.2 percent on-year due mainly to a high-base effect, and investment from Japan also fell 10.5 percent to $930 million.

But investment from the European Union advanced 38.1 percent to $4.0 billion, and that from China, Hong Kong and Taiwan surged 49.9 percent on-year to $2.23 billion, the data showed.

Investment in the form of mergers and acquisitions fell 5.5 percent on-year to $7.16 billion, the data showed.

Yonhap