Jung Jong-young, director-general for investment policy at the Ministry of Trade, Industry and Energy, on Jan. 10 at Government Complex-Sejong gives a briefing on foreign direct investment in the country last year. (Ministry of Trade, Industry and Energy)
By Xu Aiying and Kim Hayeon
Foreign direct investment (FDI) in Korea last year posted a record high.
The Ministry of Trade, Industry and Energy on Jan. 10 said the value of pledged FDI surged 42.3% from 2020 to USD 29.51 billion.
The 2021 figure is the highest since the government began compiling such data in 1962, breaking the previous mark of USD 26.9 billion set in 2018.
Made investment in Korea jumped 57.5% to USD 18.03 billion last year.
By industry, the service sector saw the amount of pledged FDI rise 64.2% to USD 23.57 billion, with phenomenal increases seen in information and communications (317.2%), distribution (139.1%) and business support and leasing (833%).
Pledged FDI in manufacturing, however, decreased 16.2%. The ministry said manufacturing tends to see slower recovery than the service industry because of manufacturing being accompanied by facility investment.
By country, investment from the U.S. reached USD 5.26 billion (down 0.9%), the European Union USD 12.8 billion (up 169%), Greater China USD 7.54 billion (up 38.1%) and Japan USD 1.21 billion (up 52.8%).
“The inflow of investment in supply chains, vaccine and bio, and the hydrogen economy strengthened the connection of FDI with industrial and energy policies,” the ministry said. “Despite the prolonged COVID-19 pandemic and global crisis in supply chains, foreign investment went beyond the base effect to set a new record high and contributed to the expansion of economic recovery and supply chains.”
xuaiy@korea.kr
