According to Yonhap News,

(SEOUL=Yon Hap News)Foreign direct investment (FDI) in Korea exceeded USD 10 billion in the first half of the year.

Korea’s exports were also higher than those of its competitors. The economic index of the manufacturing industry has increased despite not yet meeting the baseline level.

The Ministry of Trade, Industry & Energy (MOTIE) announced on June 27 that FDI (notification basis) from January to June reached a record USD 10.7 billion, a 39.7 percent increase year-on-year.

Investment from China surged to USD 2.38 billion, a 615.3 percent increase. MOTIE analyzed that Korea’s tourism and leisure, cultural contents and food sectors have emerged as new investment markets of China with the adoption of its overseas investment policies. FDI from Europe reached USD 3.25 billion, a 40.3 percent increase.

MOTIE said increasing FDI is boosting job creation and the economy despite uncertainties at home and abroad. It is confident Korea will attract USD 17 billion in FDI this year, the target amount of this year.

Korea’s exports from January to May reached USD 235.7 billion, a 2.6 percent increase year-on-year. Korea posted a trade surplus of USD 15 billion.

The country’s exports increased by 3.5 percent from January to April while that of China and Japan decreased by 2.3 percent and 2.9 percent, respectively. Korea’s trade volume in the same period was USD 366.1 billion, ranking 8th in the world and outperforming Hong Kong by USD 130 billion.

According to the Business Survey Index (BSI) conducted by the Korea Institute for Industrial Economics & Trade (KIET) from June 2 to 24, the 2nd quarter’s index of market conditions of 326 manufacturing companies was 90, 6 points up from the previous quarter. Many companies expect an economic downturn when the number is lower than 100.

The index for semiconductors was highest, at 129, which was followed by machinery equipment (100), textiles (96), shipbuilding (93) and automobiles (90). The expected BSI for the 3rd quarter is 102, lower than the 2nd quarter’s 110.

“We expect the green light in the 2nd half of the year based on indicators of the real economy despite some economic uncertainties, including the exit strategy of the United States, China’s economic slowdown and the weak yen,” said Kwon Pyung-oh, Deputy Minister of MOTIE.

kms1234@yna.co.kr

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