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Korea's overseas direct investment falls 8.9% in Q1

Published: 20 Jun. 2025, 17:35 Updated: 22 Jun. 2025, 17:32

Shipping containers are stacked at Pyeongtaek Port in Gyeonggi on June 1. [YONHAP]

Korea's overseas direct investment fell nearly 9 percent in the first quarter from a year earlier, the Ministry of Economy and Finance said Friday, noting overseas investments may be returning to "normal" pre-Covid-19 pandemic levels.

According to data compiled by the ministry, overseas direct investment by Korean companies totaled $15.13 billion during the January-to-March period, down 8.9 percent from the same period last year.

The ministry noted that the recent decline reflects the fading of the base effect following a surge in outbound investments during the 2021 to 2022 period, with investment levels gradually returning to pre-pandemic norms.

By sector, investments in overseas financial and insurance industries rose 23.4 percent on year to $7.74 billion in the first quarter. Investments in the overseas mining sector jumped 55.1 percent to $1.05 billion.

However, investments in foreign manufacturing dropped 16.9 percent to $3.56 billion, while those in overseas real estate markets plunged 57.1 percent to $1.09 billion, the ministry said.

By region, North America received the largest share of Korea's overseas investment at $5.82 billion, followed by Europe with $3.38 billion and Asia with $3.03 billion.

Compared with a year earlier, investments in North America and Europe both declined by 18.5 percent, while investments in Asia increased by 26.4 percent.

"The global trade environment is facing rapid changes, with the United States formalizing its policy to raise tariffs on trade partners and maintaining high interest rates amid a slowing global economy," the ministry said.

Going forward, the government plans to closely monitor global economic trends and strengthen communication and cooperation with major investment destination countries to help local firms ensure stable operations abroad, it added.

Yonhap