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Busan achieved a record-breaking FDI in 2023, attracting USD 640 mn

According to Yonhap News,

Busan recorded an all-time high of foreign direct investment (FDI) last year.

According to the 2023 FDI Trends released by the the Ministry of Trade, Industry and Energy (MOTIE), the reported FDI in Busan recorded URS 640 million.

The reported FDI in Busan was USD 290 million in 2019, USD 300 million in 2020, USD 570 million in 2021, and USD 510 million in 2022.

Busan surpassed the USD 500 million mark for three consecutive years since 2021, more than doubling since four years ago.

The main industries foreign companies invested mostly were service and manufacturing industries.

Of 92 FDI cases (USD 640 million), the service industry accounted for 58.3 percent with 72 cases (USD 370 million), while the manufacturing industry accounted for 17.4 percent with 16 cases (USD 110 million).

By country, the main contributors were: UK with four investment cases of USD 160 million (24.4%); Singapore with 12 cases of USD 150 million (24%); USA with 4 cases of USD 110 million (17%); and Cayman Islands with USD 100 million (5.6%).

The UK invested mostly in electricity and gas, while Singapore displayed an interest in finance/insurance, R&D, and science and technology sectors.

The US heavily invested in ICT, wholesale/retail (distribution), while Cayman Islands invested in transportation/storage.

Sinagpore made significant investment in specialized sectors such as finance and R&D.

With a surge of FDI in energy new industries, investment in electricity/gas industries reached a record high.

Greenfield investment, referring to FDI, where a company establishes operations in an investment destination country, set a historic milestone of USD 610 million, contributing to job creation and revitalization of the local economy.

Busan's mayor said "Busan attracted affiliates and R&D center of 9 large corporations including Samsung and Hanwha over the past three years, heralding an era of KRW 4 trillion investment attraction last year," adding that "with the global hub city special act in 2024, we will make Busan an international free city like Singapore and Hong Kong, where more people, companies and funds flow in."
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Source: Yonhap News (January 10, 2024)

** This article was translated from Korean.