FDI pledges to S.Korea grows 12.5 pct in H1
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E-mail Xinhua, July 15, 2013
Foreign direct investment (FDI) pledged to South Korea grew 12.5 percent in the first half of this year due to solid figures from the United States and Europe, a government report showed Monday.
Inward FDI pledges reported during the January-June period was 8 billion U.S. dollars, up 12.5 percent from the same period of last year, according to the Ministry of Trade, Industry and Energy.
FDI pledges from the U.S. more than doubled to 2.52 billion dollars in the first half, with the figure from the European Union jumping 77.3 percent over the same period.
The ministry noted that investment environment was improved especially in the second quarter amid easing geopolitical risks on the Korean Peninsula and disappearing uncertainties surrounding government policies following the launch of the new administration under President Park Geun-hye.
The inward FDI pledge rose from 3.4 billion dollars in the first quarter to 4.6 billion dollars in the second quarter.
The FDI actually arriving here was down 9.3 percent from a year earlier to 4.41 billion dollars in the first half, but the reading was 31.3 percent higher than an annual average of 3.36 billion dollars over the past five years.
By industry, FDI pledges in the service sector surged 52.6 percent on-year to 5.46 billion dollars in the first half, while the figure in the manufacturing industry tumbled 27.2 percent to 2. 53 billion dollars.
By type, investment through mergers and acquisition (M&A) soared 68.4 percent over the same period, but green filed investment, which builds factories and create new jobs, decreased 9.1 percent.
The ministry said that there remained downside risks such as the depreciation of the Japanese yen that would offset positive effects from the global economic recovery and easing geopolitical risks on the Korean Peninsula.
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