Overseas Direct Investment in Q2 Reaches $16.5 Billion, Up 26.8% YoY

Ministry of Economy and Finance Announces Q2 2021 Overseas Direct Investment Trends
Manufacturing Up 59%, Science and Technology Up 622%, Wholesale and Retail Up 222%

[Sejong=Asia Economy Reporter Moon Chaeseok] Overseas direct investment in the second quarter of this year increased by nearly 30% compared to the same period last year due to factors such as export growth. Overseas direct investment refers to the funds that companies invest for overseas management, and decisions are often made based on medium- to long-term management plans.

Source: Ministry of Economy and Finance

According to the '2021 2nd Quarter Overseas Direct Investment Trends' announced by the Ministry of Economy and Finance on the 17th, overseas direct investment in the second quarter (April to June) amounted to 16.5 billion dollars, a 26.8% increase compared to the same period last year.

The net investment amount, which deducts the amounts recovered through equity sales, loan investment recoveries, and liquidations from the total overseas direct investment amount, was 12.84 billion dollars, marking a 57.3% increase compared to the same period last year.

Source: Ministry of Economy and Finance

By industry, manufacturing, science and technology, and wholesale and retail sectors showed remarkable growth. Manufacturing increased by 59%, science and technology by 622.4%, and wholesale and retail by 222.8%. The finance and insurance sector, which accounts for 34.4% of the total investment amount, increased by 0.5%, maintaining a similar level to the second quarter of the previous year.

Source: Ministry of Economy and Finance

By country, the United States accounted for 6.04 billion dollars, or 36.6% of the total investment amount. The Cayman Islands followed with 2.03 billion dollars (12.3%), China with 1.59 billion dollars (9.6%), Canada with 1 billion dollars (6%), and Luxembourg with 900 million dollars (5.5%).

Investment amounts increased significantly compared to the same period last year in the United States (173%), China (202.9%), Canada (186.9%), and Luxembourg (170.4%), but investment in the Cayman Islands decreased by 17.8%.

Source: Ministry of Economy and Finance

By region, North America accounted for 7.04 billion dollars, or 42.7% of the total investment amount. Other regions included Asia with 3.58 billion dollars (21.7%), Latin America with 2.66 billion dollars (16.2%), Europe with 2.38 billion dollars (14.4%), and Oceania with 630 million dollars (3.8%).

Investments increased in North America (174.9%), Europe (24.9%), Oceania (49.2%), and Africa (47.9%), but decreased in Asia (-17%), Latin America (-10.8%), and the Middle East (-94.6%).

By industry, the amounts recovered from investments were largest in finance and insurance (1.29 billion dollars), manufacturing (750 million dollars), and real estate (580 million dollars). By country, the Cayman Islands (810 million dollars), the United States (800 million dollars), and Luxembourg (410 million dollars) ranked highest.