FDI pledges to Korea pass $20 bn milestone as of Sept, spending stops at $11 bn
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According to the Ministry of Trade, Industry and Energy on Thursday, the nation received $21.5 billion worth of new FDI commitments during the January-September period, up 18.2 percent from $18.2 billion a year ago.
The record FDI pledges owed to a string of incentives and confidence in high-tech and innovation power, said the industry ministry.
The actual investment that arrived in the country stopped at $11.1 billion as of September this year, dropping by 6.7 percent on year from $11.9 billion.
There were a total of 2,498 FDI pledges, up 12.7 percent on year versus 1,745 expedited cases, also up 12.7 percent over the same period.
By industry, FDI pledges mostly went to advanced sectors such as the semiconductor, electric vehicle, and secondary vehicle industries in the January-September period.
Investment in the manufacturing industry significantly grew by 152 percent to $7.8 billion, taking up 36.2 percent of the total FDI.
FDI pledges in the service sector, however, plunged 11.5 percent to $12.6 billion during the first nine months of this year.
By region, FDI pledges from the U.S. shot up 115.9 percent on year to $7.1 billion and Japan 42.9 percent to $1.04 billion during the cited period.
FDI commitments from the EU, however, plunged 55 percent to $3.3 billion and from China, Hong Kong, and Singapore 14.9 percent to $4.3 billion but China¡¯s FDI to the manufacturing sector rose by 15.4 percent.
Greenfield investments – when a parent company establishes a subsidiary in a foreign country – stood at $13.9 billion, rising 24.4 percent on year.
¡°We will increase incentives for advanced technology investments on top of providing more financial support for the development of strategic technologies,¡± said Moon Dong-min, head of the Trade Ministry¡¯s trade investment department.
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