Foreign direct investment in S. Korea up slightly in H1

By Lee Joon-seung
SEOUL, July 2 (Yonhap) -- Foreign direct investment (FDI) in South Korea gained
2.1 percent in the first half from a year earlier due to a rise in funds pledged
for large business projects, a government report said Thursday.
South Korea attracted US$4.64 billion in future FDI in the January-June period,
compared to $4.54 billion a year earlier, according to the preliminary report by
the Ministry of Knowledge Economy.
It said while investment plunged in the first quarter, expectations of business
opportunities related to the government's plan to build up the country's
eco-friendly "green" growth industry attracted overseas investors from April
through June.
Inbound investments nosedived 38.2 percent on-year to $1.67 billion, but shot up
62 percent to around $2.97 billion in the second quarter.
The ministry in charge of the country's industrial policies and investment
promotion said the surge is directly linked to the 79.2 percent increase in
investments exceeding $100 million. It added investments for clean electricity
and hightech electronics gained 31.9 percent on-year to $860 million.
Of the total, $1.68 billion is expected to be invested into manufacturing areas,
with $2.95 billion to be used to expand foreign business presence in the
country's service sector.
FDI from Japan soared 82.6 percent annually to $1.17 billion while figures from
the United States and the European Union (EU) fell 12.8 percent and 16.2 percent,
respectively, the report said.
yonngong@yna.co.kr
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