Ministry of Finance and Economy in Sejong City, South Korea. [Photo by Kim Yu-jin]
In the first quarter of this year, South Korea's foreign direct investment (FDI) exceeded $21.7 billion. This increase is attributed to the robust performance of global stock markets and a rise in overseas business investments by companies, continuing the upward trend observed since the second half of last year.
According to the Ministry of Finance and Economy, the FDI for the first quarter reached $21.74 billion, marking a 36.2% increase from $15.96 billion during the same period last year. This is the highest growth rate since the first quarter of 2022 (147.9%). The FDI has been on the rise following increases in the third and fourth quarters of last year.
By sector, the financial and insurance industry led the growth with $13.38 billion, a 63.0% increase compared to the previous year, driven by pension funds investing in overseas financial institutions and equity investments for international business expansion.
The information and communication sector saw investments of $1.19 billion, a significant increase of 220.4% year-on-year, while the scientific and technical services sector reached $910 million, up 322.2%. In contrast, manufacturing investments totaled $3.4 billion, a decrease of 5.7% from $3.61 billion last year, and real estate investments fell by 23.6% to $840 million.
Regionally, North America received the largest share of FDI at $10.26 billion, followed by Europe ($5.13 billion), Asia ($3.5 billion), and Latin America ($2.36 billion). Notably, investments in North America and Europe increased by 69.2% and 40.1%, respectively, compared to the previous year.
By country, the United States was the top destination for investment, attracting $10.15 billion. Luxembourg followed with $2.83 billion, the Cayman Islands with $2.08 billion, and Singapore with $1.05 billion. Investments in the U.S. continued to grow, particularly in the financial and insurance sectors.
A ministry official stated, "Since the second half of last year, the favorable global stock market conditions have led to an expansion of overseas financial investments aimed at diversifying revenue and alternative investments."
The official added, "The government is closely monitoring changes in external economic and investment conditions, such as interest rate hikes in major countries like Japan and the European Union, while planning to strengthen communication and cooperation with key investment destinations and institutions to ensure stable operations for our companies abroad."
According to the Ministry of Finance and Economy, the FDI for the first quarter reached $21.74 billion, marking a 36.2% increase from $15.96 billion during the same period last year. This is the highest growth rate since the first quarter of 2022 (147.9%). The FDI has been on the rise following increases in the third and fourth quarters of last year.
By sector, the financial and insurance industry led the growth with $13.38 billion, a 63.0% increase compared to the previous year, driven by pension funds investing in overseas financial institutions and equity investments for international business expansion.
The information and communication sector saw investments of $1.19 billion, a significant increase of 220.4% year-on-year, while the scientific and technical services sector reached $910 million, up 322.2%. In contrast, manufacturing investments totaled $3.4 billion, a decrease of 5.7% from $3.61 billion last year, and real estate investments fell by 23.6% to $840 million.
Regionally, North America received the largest share of FDI at $10.26 billion, followed by Europe ($5.13 billion), Asia ($3.5 billion), and Latin America ($2.36 billion). Notably, investments in North America and Europe increased by 69.2% and 40.1%, respectively, compared to the previous year.
By country, the United States was the top destination for investment, attracting $10.15 billion. Luxembourg followed with $2.83 billion, the Cayman Islands with $2.08 billion, and Singapore with $1.05 billion. Investments in the U.S. continued to grow, particularly in the financial and insurance sectors.
A ministry official stated, "Since the second half of last year, the favorable global stock market conditions have led to an expansion of overseas financial investments aimed at diversifying revenue and alternative investments."
The official added, "The government is closely monitoring changes in external economic and investment conditions, such as interest rate hikes in major countries like Japan and the European Union, while planning to strengthen communication and cooperation with key investment destinations and institutions to ensure stable operations for our companies abroad."
* This article has been translated by AI.
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