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Biz News Korea(Eng)

FDI pledges to S. Korea hit record high of $21.3 bn in 2016

Collected: 2017.01.04

Distributed: 2017.01.05

Source: Go Direct

Foreign investors pledged record $21.3 billion in direct investment in South Korea last year, up 1.9 percent on year from $20.9 billion in 2015, said the Ministry of Trade, Industry and Energy (MOTIE) Tuesday.

Foreign direct investment (FDI) commitments to South Korea surpassed $20 billion for two consecutive years, narrowing the gap between Koreans’ overseas investment and foreign investors’ investment in Korea.

Services sector drew FDI of $15.51 billion, up 5.3 percent on year and keeping up growth for the last six years. Investment in the manufacturing sector increased 12.4 percent to $5.13 billion. Investment in mergers and acquisitions in Korea dropped 7.8 percent from a year ago to $6.27 billion last year.

By region, the European Union pledged record $7.4 billion in 2016, nearly tripling the year-ago figure, while new FDI pledges from China rose 3.6 percent on year to $2.05 billion. Investment from the U.S. and Japan declined to $3.89 billion and $1.25 billion, respectively.

Arrivals of funds, however, stopped at $9.76 billion last year, down 41 percent from 2015.

By Ko Jae-man

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