Foreign Investment of $33.07 Billion on the 17th
Up 7.8% Year-on-Year, Achieving Annual Record High
Manufacturing Attracts $14 Billion, Semiconductors $1.3 Billion
This year, foreign investment performance surpassed $33 billion, setting a new record high. The government announced that it will continue to expand support and pursue regulatory innovation next year in response to the demands of foreign investors.
On the 19th, the Ministry of Trade, Industry and Energy held a Foreign Investment Strategy Meeting at Hanguknoejip in Jung-gu, Seoul, and made this announcement. As of the 17th, this year's foreign investment performance totaled $33.07 billion based on reported amounts. Compared to the same period last year, it increased by 7.8%. It already exceeds last year's annual performance of $32.71 billion, making it the largest scale ever recorded.
In particular, manufacturing investment accounted for 42.3% of the total with $14.01 billion. The growth rate also sharply increased by 29.3% compared to the previous year. Foreign investment in domestic semiconductors rose by 46.3% to $1.33 billion, and in the bio sector, it surged by 252.1% to $1.22 billion. The service industry increased slightly by 0.1% to $16.85 billion. Other service industries decreased by 26.5% to $2.21 billion.
By type, greenfield investment, where foreign investors directly purchase land or build new facilities, reached $25.57 billion, up 17.5% from last year. On the other hand, M&A, which involves acquiring or merging with domestic companies, fell by 15.8% to $7.51 billion.
Investment from Japan and China increased... “We will create a foreign investment-friendly environment”
The country showing the most interest in domestic investment was Japan. Japanese investors invested $6.06 billion in Korea, nearly five times more than the previous year. China followed with $5.54 billion, a 277.3% increase. Both countries achieved record annual performances. However, investment from the European Union (EU) decreased by 32.9% to $6.23 billion, and the United States also shrank by 23.5% to $4.57 billion.
The government evaluated that the expansion of investment in advanced industries and materials, parts, and equipment (SoBuJang) stabilized supply chains, and greenfield investment increased production and employment. Minister of Trade, Industry and Energy An Deok-geun said, “It is particularly encouraging that investment has been concentrated in advanced industries and the SoBuJang sector,” adding, “Investment in manufacturing increased more than in the service sector, which is expected to help advance domestic industries.”
Foreign chambers of commerce in Korea and representatives of foreign-invested companies attending the meeting requested minimizing negative impacts caused by domestic political uncertainties. This is interpreted as a remark considering the chaotic domestic political situation following President Yoon Seok-yeol’s declaration of martial law on the 3rd. They also demanded regulatory improvements to meet global standards and increased incentives for foreign investment.
Minister An said, “Despite recent internal and external environmental changes, Korea’s economic system is operating stably without disruption,” and explained, “The government will faithfully carry out its core duties, including creating a foreign investment-friendly environment.” He added, “Next year, we plan to actively promote the expansion of foreign investment support systems and regulatory innovation.”
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