Foreign direct investment soars in H1

SEOUL, July 14 (Yonhap) -- Foreign direct investment (FDI) in South Korea spiked 23.8 percent on-year in the first half due mainly to expectations of a solid economic recovery here, a government report said Thursday.
South Korea received US$5.37 billion worth of reported FDI in the January-June period, compared to $4.33 billion a year earlier, according to the preliminary report by the Ministry of Knowledge Economy.
Most reported FDI will result in actual investments in one or two years, although some funds may have already arrived, the ministry said.
"The increase mirrors rising expectations for the economy's recovery, despite Japan's crippling earthquake, political unrest in the Middle East and Europe's deepening debt crisis," the ministry said.
Also responsible was the growing prospects that the free trade agreement (FTA) between South Korea and the European Union (EU) will spur trade, provide more business opportunities and fuel growth in Asia's fourth-largest economy.
According to the report, FDI from the EU members rose 45.6 percent on-year in the six-month period, while that from the United States surged 186 percent.
Despite the shock caused by the massive earthquake and tsunami that hit Japan in March, investments from the neighboring country rose 43.5 percent on-year.
For the entire year, investments coming into South Korea will likely reach around $15 billion, up from around $13 billion tallied for last year, according to the report.
The ministry, meanwhile, said the government aims to attract $30 billion worth of FDI in 2015 by attracting investment from large emerging economies such as China, streamlining incentives, and providing more direct and indirect support for foreign investors.