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FDI pledges to Korea reach record-high of $24 billion through Q3
Park Deok-yeol from Foreign Investment Policy Division under the Ministry of Trade, Industry and Energy debriefs reporters about foreign direct investment made to Korea this year at the ministry's headquarters in Sejong, Wednesday. Courtesy of Ministry of Trade, Industry and Energy
By Ko Dong-hwan
Korea has recorded its highest-ever foreign investment commitments during the first three quarters this year, with key contributions coming from sectors of service and manufacturing, government data showed Wednesday.
Foreign direct investment (FDI) pledges to the country from January to September this year have reached nearly $24 billion, up 11 percent from the same period last year. Pledges that actually arrived in the country have reached nearly $14 billion, up 20 percent year-on-year. Both figures are all-time highs, according to the Ministry of Trade, Industry and Energy.
The biggest accumulated FDI came from the country's service sector: $13.8 billion, up 9 percent year-on. Outstanding fields were finance and insurance with $7.4 billion and hotels and restaurants with $300 million.
The manufacturing sector has netted the second biggest investment pledges for the country with $9 billion altogether drawn for chips, batteries and other advanced sectors. Electronics and electric fields accounted for $3.3 billion and chemical engineering $3 billion.
The ministry said the country, "despite global uncertainties," saw an increase in foreign investment in advanced sectors like semiconductors and secondary batteries. That can help strengthen the country's supply chains and create more jobs, the authority added.
The United States, one of Korea's key trade partners, has vowed to make $5.2 billion worth of investments during the nine-month period, down 27.2 percent year-on-year due to a high-base effect, according to the ministry. Investment from Japan also fell 10 percent to $930 million. But investment from the European Union advanced 38 percent to $4 billion, and that from China, Hong Kong and Taiwan surged nearly 50 percent year-on-year to $2.23 billion, the data showed.
Greenfield investment ― a parent company beginning a new venture or establishing new facilities ― rose 20 percent year-on-year to come to $16.8 billion, while investment in the form of mergers and acquisitions fell 5.5 percent year-on-year to $7.2 billion, the data showed.