Foreign Investment Reaches $25.18 Billion by Q3 This Year... Record High

Ministry of Trade, Industry and Energy Announces Q3 Foreign Investment Performance
"Global FDI Contraction... Steady Increase in Global Companies' Investment in Korea"

Foreign direct investment (FDI) exceeded $25.1 billion by the third quarter of this year, achieving the highest cumulative amount on record for the third quarter.

On the 2nd, the Ministry of Trade, Industry and Energy announced that the cumulative foreign direct investment (based on reported figures) for the third quarter reached $25.18 billion (up 5.2%), marking the highest amount since FDI statistics began in 1962.

Manufacturing recorded a significant increase of 36.4% compared to the same period last year, reaching $12.31 billion, achieving the highest performance once again following the third quarter of last year. Investment amounts surged in sectors such as electrical and electronics ($4.51 billion, up 35.9%), machinery, equipment and medical precision ($1.66 billion, up 128.5%), and pharmaceuticals ($690 million, up 136.4%). Service sector investment slightly decreased to $11.95 billion (-13.3%) due to the base effect from last year's large-scale investment (Company A's M&A of $1.05 billion).

By country, investment from Japan reached $4.69 billion (up 412.7%), achieving the highest record ever. China recorded $4.57 billion (up 316.3%). Investment inflows from the United States and the European Union (EU) were $3.12 billion (-39.9%) and $3.95 billion (-1.4%), respectively.

By type, greenfield investments for new and expanded factories increased by 12.9% year-on-year to $18.93 billion, setting a new record and expected to have positive effects such as job creation and revitalization of local economies. M&A investments recorded $6.26 billion, down 12.7% from the previous year.

An official from the Ministry of Trade, Industry and Energy stated, "Global FDI has declined for two consecutive years due to geopolitical uncertainties such as worsening Middle East tensions and ongoing US-China conflicts." However, he added, "In contrast, South Korea recorded a historic high of $25.18 billion in the third quarter of 2024, confirming its status as a stable and attractive investment destination that is attracting investments from global companies." He continued, "Manufacturing investment led the overall increase by setting a record high, with rapid growth in advanced industries such as semiconductors (up 52.8%) and bio (up 264.2%), and investment in materials, parts, and equipment also reached a record $9.38 billion, highlighting the notable increase in investment in advanced strategic industries." He added, "It is expected that the expansion of investment by global companies in Korea will contribute to stabilizing the domestic advanced industry supply chain and strengthening economic security in the future."