According to data released Tuesday by the Ministry of Finance and Economy, the country’s FDI reached $21.74 billion in the first quarter, up 36.2 percent from a year earlier, led by investment in financial and insurance services and a sharp increase in flows to the U.S.
The growth followed a 5.7 percent on-year decline to US$15.43 billion in the second quarter of last year, before rising 33.7 percent to $19.64 billion in the third quarter and 20.9 percent to $22.34 billion in the fourth quarter, continuing its upward trend.
By sector, investment in finance and insurance accounted for the largest, at $13.38 billion, up 63 percent from a year earlier. Manufacturing investment fell 5.7 percent to $3.4 billion.
Investment in information and communications jumped 220.4 percent to $1.19 billion, while investment in professional, scientific and technical services surged 322.2 percent to $910 million. Real estate investment declined 23.6 percent to $840 million.
By region, North America drew the largest amount at $10.26 billion, up 69.2 percent from a year earlier. Investment in Europe rose 40.1 percent to $5.13 billion, while investment in Asia increased 13.2 percent to $3.5 billion. Investment in Latin America fell 4.4 percent to $2.36 billion.
The U.S. was the largest destination, with investment reaching $10.15 billion in the first quarter, up 107.6 percent from a year earlier and marked the largest quarterly investment into the country since the first quarter of 2022.
South Korea's investment in the U.S. rose from $4.89 billion in the first quarter of last year to $5.78 billion in the second quarter, $8.32 billion in the third quarter, and $6.73 billion in the fourth quarter, before climbing to $10.15 billion in the first quarter of this year.
Luxembourg was the second-largest destination, with investment rising 97.9 percent to $2.83 billion.
Investment in the Cayman Islands fell slightly by 0.5 percent to $2.08 billion. In Singapore, it rose sharply by 115.7 percent to $1.05 billion, while in Vietnam it increased by 55.1 percent to $730 million.
FDI generally refers to South Korean individuals or companies acquiring stakes in foreign firms providing long-term loans, or expanding overseas operations. It typically includes corporate acquisitions and equity investments, while small retail purchases of foreign stocks are usually excluded.
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