FDI pledges to S. Korea hit fresh record through Q3

Foreign direct investment (FDI) pledges to South Korea jumped 5.2 percent over the January-September period, data showed Wednesday, driven by the robust performance of the manufacturing sector. South Korea received US$25.18 billion in FDI commitments during the first nine months of 2024, the highest amount since the country began compiling the data in 1962, according to the Ministry of Trade, Industry and Energy. The amount of investment that actually arrived in South Korea, however, fell 27.2 percent during the period to $10.4 billion. "(The latest data) shows that South Korea has been attracting investment from global companies as a stable and attractive destination, amid the escalating geopolitical conflict in the Middle East and the tension between the United States and China," the ministry said in a statement. By industry, the manufacturing sector received FDI pledges worth $12.3 billion, up 36.4 percent from a year earlier. The sector accounted for 48.9 percent of the total investment pledges. The electricity sector saw its investment rise 35.9 percent to $4.51 billion, followed by the machinery segment with $1.66 billion, more than doubling from a year earlier. On the other hand, the chemical sector saw its investment pledges fall 16.8 percent to $2.5 billion. The report also showed that the service industry received FDI pledges worth $11.9 billion over the January-September period, down 13.3 percent on-year. The sports and entertainment sector attracted $250 million worth of investment, up 95.8 percent on-year, while the finance and insurance segment saw its investment fall 1.1 percent to $7.32 billion. By investor, the United States pledged $3.12 billion worth of investments through the third quarter, down 39.9 percent on-year. The European Union pledged to make investments worth $3.95 billion, also down 1.4 percent during the period. FDI pledges from China, Hong Kong and Taiwan, however, more than doubled, reaching $5.68 billion, up from $2.23 billion a year earlier. Investment pledges from Japan hit a record high at $4.69 billion, compared with just $910 million posted a year earlier, the report added. Source: Yonhap News Agency