South Korea`s overseas direct investment surged 21.6 percent in the first six months of the year from a year ago, recovering above $20 billion for the first time in four years, said the Ministry of Strategy and Finance on Thursday.

The country`s overseas direct investment reached $21.75 billion in the January-June period, compared with $17.89 billion a year ago. The last time Korea’s overseas direct investment surpassed $20 billion was the first half of 2012 when the figure hit $21.79 billion. Since then, it slid to $17.06 billion and $16.03 billion in the first half of 2013 and 2014, respectively.

Investments by real estate businesses (91.2 percent), financial institutions and insurers (37 percent) and manufacturers (11.5 percent) increased year over year, whereas investments by mining companies (-49.0 percent) declined. Direct investments by manufacturers plunged 48.5 percent in Europe, but rose 28.9 percent in Asia and 33.1 percent in North America.

Asia was South Korea`s biggest investment destination with a total of $6.78 billion, followed by North America with $6.45 billion, Latin America with $4.03 billion and Europe with $3.22 billion. Investments increased in all regions except Asia and Oceania.

By country, investments in the United States (34 percent), the Cayman Islands (155.7 percent) and China (36.8 percent) surged, while investments in Vietnam (-17.7 percent), Singapore (-35.8 percent) and Hong Kong (-28.9 percent) declined.

The finance ministry said the country`s overseas investment may retreat in the coming months due to a protracted slump in the world economy after the United Kingdom’s vote to exit the European Union (EU) and spreading protectionism, coupled with rising uncertainties before the U.S. presidential election slated in November.

By Cho Si-young

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