Due to the Continued COVID-19 Pandemic... 21.6% Decrease in Overseas Direct Investment in Q1

[Sejong=Asia Economy Reporter Moon Chaeseok] Due to the impact of COVID-19 making physical movement difficult, overseas direct investment in the first quarter decreased by more than 20%.

According to the "2021 Q1 Overseas Direct Investment Trends" announced by the Ministry of Economy and Finance on the 25th, overseas direct investment in the first quarter amounted to 11.12 billion dollars, a 21.6% decrease compared to the previous year. Overseas direct investment had decreased for three consecutive quarters from Q1 to Q3 last year, increased in Q4, but decreased again in Q1.

The decline in net investment, which subtracts recovery amounts such as equity sales, loan investment recoveries, and liquidations from the overseas direct investment amount, was even greater. Net investment was 7.65 billion dollars, down 31.6%.

By industry, the financial and insurance sector (5.37 billion dollars) accounted for the largest share at 47.9% of total investment.

Other sectors followed in order: manufacturing (25.2%), real estate (8.6%), and wholesale and retail trade (4.1%).

Looking at changes by industry, wholesale and retail trade sharply declined by 58.4% compared to the same period last year, and real estate (-55.3%) and manufacturing (-14.3%) also saw significant decreases.

The financial and insurance sector surged by 75.4% due to some large-scale equity investments.

By country, investments in the United States (-18.8%) and Vietnam (-10.8%) decreased, with notable declines in Canada (-79.8%) and Singapore (-49.0%). On the other hand, investments in the Cayman Islands (+14.7%), Luxembourg (+32.9%), and China (+15.9%) increased.

By region, investment amounts were as follows: North America 4.47 billion dollars (39.9%), Asia 2.66 billion dollars (23.7%), Europe 2.11 billion dollars (18.8%), Latin America 1.63 billion dollars (14.5%), and Oceania 210 million dollars (1.9%). Investments decreased in all regions except Latin America.

Recovery amounts were high in the financial and insurance sector (1.67 billion dollars), real estate (500 million dollars), and electricity and gas sectors (420 million dollars).

By country, recovery amounts were highest in the Cayman Islands (1.01 billion dollars), the United States (950 million dollars), and Luxembourg (340 million dollars).