FDI to S. Korea reduces in 2013 amid weak yen
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E-mail Xinhua, January 28, 2014
Foreign direct investment (FDI) into South Korea reduced last year as the weak yen trend discouraged Japanese companies from overseas investment, a government report showed Tuesday.
Inward FDI reported in 2013 was 14.55 billion U.S. dollars, down 10.7 percent from a year earlier, according to the Ministry of Trade, Industry and Energy.
The figure reduced on the back of the Japanese yen's depreciation, but it stayed at a stable level compared with the average FDI of 13.24 billion dollars in the past five years, the ministry said.
FDI pledges from Japan tumbled 40.8 percent from a year earlier to 2.69 billion dollars in 2013 as Japanese firms refrained from overseas investment amid the weak yen trend.
The South Korean won surged 23.6 percent against the Japanese yen last year, the highest gain in 15 years. The strong won along with the weak yen boosted costs for Japanese companies in its investment into South Korea.
FDI pledges from the United States declined 4.1 percent to 3.53 billion dollars, but those from Europe soared 76.9 percent to 4.8 billion dollars.
The inward FDI actually arriving here was down 9.4 percent from a year earlier to 9.68 billion dollars in 2013, but the reading was higher than an average of 7.57 billion dollars over the past five years.
By industry, FDI into the service industry increased 2.6 percent, but investment into the manufacturing sector sank 23.8 percent on year in 2013.
By type, investment through mergers and acquisition (M&A) surged 32.8 percent over the same period, but green field investment, which builds factories and create new jobs, tumbled 23. 7 percent. Endi
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