FDI in Korea up 41% on yr in Jan-Sept to $18bn, far exceeds decade-long annual average

Foreign investment in South Korea surged 41 percent in the first seven months of this year from a year ago period to over $18 billion to exceed annual average of the last decade amid international spotlight on Korean ICT, green, and bio potentials.

Foreign direct investment in Korea amounted to $18.21 billion from January to September, 41.3 percent higher on year, according to data published by state-funded Korea Trade-Investment Promotion Agency (KOTRA) on Tuesday. The figure far exceeded the average FDI of $13.18 billion from the past 10 years.

Foreign capitals invested mostly in new growth sectors, focusing on digital technology and eco-friendly business that are expanding rapidly under the Korean government’s New Deal economic growth initiative.

International investment in the country’s digital technology sector, which includes internet technology and digital media content, reached $5.39 billion by September, more than doubled from a year earlier.

Renewable energy sector, such as solar farm and offshore wind power generation, pulled $710 million from foreign investors, about four times higher compared to a year ago.

In terms of investment amount, biotechnology and other new growth industries were most favored by foreign capitals, attracting the largest $8.06 billion. The figure is 27 percent greater than a year ago.

Image of Prestige BioPharma"s R&D center in Busan

The Korean subsidiary of Prestige BioPharma, a biotech firm headquartered in Singapore, is currently building an R&D center in Busan, the second largest city in Korea. It is expected to spend $150 million over five years to set up and run the R&D center in the port city.

There are about 15,000 foreign invested enterprises in operation in Korea, accounting for only 2.2 percent of the country’s total companies, according to the government’s study conducted last year. However, they are responsible for 5.6 percent of the country’s employment and 18.6 percent of exports.

Korea will be holding the 17th Invest Korea Week, hosted by trade ministry and organized by KOTRA, from Nov. 3 to 5 to draw more foreign investment. The event will be held online, with virtual meetings available for foreign investors looking for promising Korean enterprises.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]