South Korea’s second-quarter direct offshore investment jumped 26.8 percent in a year on revived corporate investment sentiment from fast global economic recovery.
The country’s direct overseas investment in April-June period reached $16.5 billion, according to data released by the Ministry of Economy and Finance on Friday. It is up 26.8 percent against a year earlier when Covid-19 crisis damped investment across the world, noted the ministry, adding that the investor activity has been reviving as conditions stabilize at home and abroad.
Manufacturing sector’s investment surged by 59.0 percent compared to a year earlier. Science and tech investment jumped 622.4 percent on year and in wholesale/retail sector 222.8 percent. Finance and insurance sector added a mere 0.5 percent from a year earlier. Real estate sector’s direct overseas investment fell 14.3 percent on year.
Finance and insurance sector, nevertheless, was responsible for the largest 34.4 percent in investment value with $5.7 billion. Manufacturing sector came second with $3.5 billion, accounting for 21.0 percent. Science and technology sector invested $1.7 billion abroad, retail/wholesale sector $1.4 billion, and real estate sector $1.3 billion.
Investments into the United States surged 173.0 percent on year, into China 202.9 percent, Canada 186.9 percent and Luxembourg 170.4 percent. But investment in Cayman Islands fell 17.8 percent on year.
Finance and insurance sector retrieved $1.3 billion from offshore investment, manufacturing sector $800 million, and real estate sector $600 million.
The country’s net retrieval from overseas investments, referring to total investments minus stake sales and debt settlements, came to $12.8 billion, up 57.3 percent on year.
By Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]