FDI pledges to S. Korea reach $11.2 bn

Foreign investors pledged to make a total investment of $11.19 billion into South Korea during the January-September period this year, according to a data released by the Ministry of Knowledge Economy (MKE) Thursday.

The figure marked a record high as of the end of September and a 47.7 percent jump from the same period a year ago.

The foreign direct investment (FDI) newly arriving in Korea stood at a subtotal of $6.76 billion, marking a 54.5 percent rise from a year ago.

By investor, Japanese investors took up 29.5 percent, Chinese (including China, Taiwan, Hong Kong, Singapore and Malaysia) 24.7 percent, the EU (European Union) 19.1 percent, the US 16.7 percent and others 10 percent.

　 Investments from China and Japan grew 145.9 percent and 130.6 percent, respectively, from a year ago while those from the EU slumped 26.6 percent.

　 By investment type, green field investments - a form of foreign direct investment where a company starts a new venture in a foreign country by purchasing land and constructing new plants and operational facilities - posted $8.28 billion, representing 74 percent of the total. The remaining investment was made in stake acquisition or M＆A (merger & acquisition) by recording $2.91 billion or 26 percent.

When compared to the same period a year ago, M & A investments and green field investments jumped 143.2 percent and 29.7 percent, respectively.

The active foreign investments came from the effectuation of FTAs (free trade agreements) that guarantee investment-friendly environments, the MKE analyzed.

Continuous investments from Japan in Korea's components and materials industry and Chinese businesses' aggressive investments in regional development projects also made contributions, the MKE explained.

[Written by Jieun Lee / edited by Soyoung Chung]

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