According to Yonhap News,
Foreign direct investment (FDI) pledges to South Korea rose 5.7 percent from a year earlier in 2024 to hit a fresh high for the second consecutive year, driven by a sharp increase in the manufacturing sector, data showed Tuesday.
South Korea received US$34.5 billion worth of FDI commitments last year, surpassing the previous record of $32.7 billion posted in 2023, according to the Ministry of Trade, Industry and Energy.
The amount of investment that actually arrived in South Korea, however, fell 24.2 percent on-year to $14.7 billion.
"(The performance) proves global investors are showing confidence in the fundamentals of the South Korean economy despite the current situation in the country," Industry Minister Ahn Duk-geun said.
"This year, the government will make all-out efforts to establish an investment environment that meets global standards by expanding communication with international investors and offering more incentives for investment in cutting-edge sectors," Ahn added.
By industry, FDI pledges in the manufacturing sector jumped 21.6 percent to $14.49 billion, with those in the material, parts and equipment sectors surging 52.7 percent to $11.13 billion.
The ministry added that FDI pledges in the semiconductor industry rose 46.5 percent to $1.33 billion, and those in the bio-health industry more than tripled to $1.23 billion.
FDI pledges in the service sector edged up 0.3 percent to $17.83 billion, led by the real estate and communication industries, the data showed.
By country, fresh investment pledges from the United States amounted to $5.24 billion in 2024, down 14.6 percent from a year earlier.
The combined amount of FDI pledges from China, Hong Kong and Taiwan, on the other hand, surged 125 percent to $7 billion, driven by both the manufacturing and service sectors.
Investment pledges from the European Union fell 18.1 percent on-year to $5.1 billion, according to the data.
colin@yna.co.kr
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Source: Yonhap News (January 7, 2025)