Notified foreign direct investment (FDI) in Seoul in the first half of the year reached USD 3.288 billion, showing 13.9 percent growth year-on-year.

Seoul city announced that this was the largest in its history and accounted for 41.1 percent of the nation’s total notified FDI (USD 7.998 billion).

Investment from Europe in Seoul was strong. It was the largest in amount, increasing by 99.3 percent (USD 867 million) from the first half of last year to reach USD 1.74 billion.

Investment from the Americas also showed a 193.8 percent increase (USD 500 million) year-on-year to reach USD 850 million.

Europe accounted for 52.9 percent of total FDI in Seoul, followed by the Americas (24.5 percent) and Asia (22.5 percent). Europe led the investment in Seoul in the first half of the year, whereas Asian investment was the highest in the last year.

In addition, Asia’s investment in Seoul in the first half only accounted USD 740 million, a 57.4 percent decrease from last year’s USD 1.736 billion. This is due to a low yen and Korea’s economic growth.

New investment in the first half of last year stood at USD 695 million but jumped by 230.8 percent to reach USD 2.299 billion this year, with more investment from Europe and the Americas in the first half of this year.

By industry, the service sector attracted USD 3.07 billion to account for 91.1 percent of total FDI, showing 47.2 percent growth from last year (USD 2.043 billion).

In the service industry, investment in finance and insurance was the highest, at USD 1.718 billion, followed by real estate and lease (USD 633 million) and business services (USD 519 million).

Due to reduced investment from Japan, FDI in the manufacturing industry decreased by 66.9 percent year-on-year to reach USD 279 million.

Seoul held investment information sessions in Beijing, Shanghai and Chicago in the first half of the year and signed business agreements with Guotai Junan Securities from China, India’s ICICI Bank and the state of Illinois. Seoul also signed a memorandum of understanding with France’s Musée Grévin and Siemens, a German company.

Moon Hong-sun, an official from Seoul’s Economic Planning Office, noted that Seoul will maintain momentum to attract new investment from Europe, Japan, Germany and the United States in the second half of the year.


Source Text

Source: Yonhap News (July 21, 2013)

** This article was translated from the Korean.