Foreign direct investment (FDI) to South Korea grew 4.8 percent from a year ago in the third quarter, the first addition in five quarters.
According to the Ministry of Trade, Industry and Energy on Thursday, the country received $3.61 billion worth of FDI commitments during the July to September period, up 4.8 percent from the same period last year. Actual investment fell 32.7 percent on year to $1.36 billion.
The FDI pledges amounted to $13.49 billion from January to September on pace to meet the government target of $20 billion for five years in a row, as foreign investment tends to expand while approaching the end of the year, the ministry said.
New FDI to the emerging industries including high-tech materials, components, artificial intelligence and fintech almost doubled from a year ago to $1.5 billion in the third quarter, as overseas investors have been diversifying their portfolio.
Offshore investors are paying attention to Korea’s part and material manufacturers that are seeking to develop new materials to replace Japanese imports since Japan has imposed restrictions on Korea-bound shipments of some high-tech materials since July. The government plans to ramp up its support for advanced petrochemical industry, chip and display makers and future-generation car sector to help them attract more overseas investments.
By Lim Sung-hyun and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]