Park Deok-yeol, director general for cross-border investment policy of the Ministry of Trade, Industry and Energy, on Oct. 4 says the cumulative value of foreign direct investment from January to September jumped 11.3% from the same period last year to post a record-high figure USD 23.95 billion. (Ministry of Trade, Industry and Energy)By Koh Hyunjeong
Foreign direct investment (FDI) in this year’s first three quarters set a record high led by electrical and electronics and chemical engineering related to semiconductors and secondary batteries.
The Ministry of Trade, Industry and Energy on Oct. 4 said pledged FDI from January to September rose 11.3% from the same period last year to USD 23.95 billion, the highest in history for the period.
Cumulative FDI in the year’s first half also rose 20.2% year on year to set another all-time high of USD 13.92 billion.
By sector, manufacturing received pledged FDI of USD 9.02 billion, up 15.7%, and that of the service sector grew 9% to USD 13.8 billion. Within manufacturing, electrical and electronics covering high-tech areas such as semiconductors and secondary batteries increased 27% and chemical engineering soared 61.1%.
In the service sector, finance and insurance showed a huge jump of 107.2% and lodging and food an even bigger leap of 228.5%.
By country, FDI from the European Union jumped 38.1% to USD 4 billion and that from Greater China, a region spanning China, Taiwan, Hong Kong and Macao, surged 49.9% to USD 2.23 billion. That from the U.S., however, decreased 27.2% to USD 5.19 billion and that from Japan declined 10.5% to USD 930 million.
By FDI type, greenfield investment to build and directly run plants or business facilities reached USD 16.79 billion, up 20.4%. That of mergers and acquisitions for the purpose of acquisition or merger dropped 5.5% to USD 7.16 billion.
FDI is investment from a party in one country in a business or company in another nation to acquire a lasting economic relationship such as participation in management or a technological alliance.
hjkoh@korea.kr
