(SEJONG=NEWSIS) Invest Korea and the Ministry of Trade, Industry & Energy (MOTIE) held China Week May 18 to 22 to promote foreign direct investment (FDI) from China. The Korean government strives to attract USD 5 billion in FDI from the Chinese region.

The program included an investment presentation session in which Korea’s investment environment was introduced to potential Chinese investors. More than 60 Chinese companies, including the Benma Group, attended the event to seek ways to invest in various Korean sectors, including IT, cultural contents, new and renewable energy and complex resorts.

MOTIE introduced the companies to Korea’s business environment, its foreign investment policies and the free trade agreement between Korea and China. It also showed the benefits Chinese investors to Korea can enjoy and provided one-to-one business meetings with potential Korean partners.

While Chinese companies in the past were mainly interested in Korea’s real estate market, they are now eyeing other sectors in Korea, including cultural contents, IT, new and renewable energy, machinery and parts and logistics.

Notified FDI into Korea reached USD 3.55 billion in the first quarter of 2015, a 29.8 percent decrease year-on-year. Arrived FDI in the same period also fell by 16.4 percent, to USD 3.15 billion, according to MOTIE.

FDI from the Middle East and United States grew in the first quarter of 2015 by 919.2 percent, to USD 210 million, and 52.9 percent, to USD 1.25 billion, respectively.

The once-strong Chinese investment in Korea’s real estate sector is now taking a wait-and-see approach. Chinese FDI in the real estate market, which hit USD 15.1 billion in the first quarter of 2014, reached USD 600 million in the first quarter of 2015.

A Chinese company, “D,” is in the consultation stage for a USD 100 million investment for a global theme park. Another Chinese company, “G,” plans to invest in the shares of a USD 10 million Korean entertainment company. It will carry out on-site consultations with five Korean entertainment companies to make a joint venture.

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