FDI notifications in S. Korea rise 10.8 pc in July-Sep
Seoul, Oct 7
Foreign direct investment notifications in South Korea rose 10.8 per cent in the third quarter from a year earlier, driven by strong global demand for Korean semiconductors and equipment for artificial intelligence infrastructure, government data showed on Wednesday.
FDI notifications reached US$22.9 billion in the July-September period, while FDI arrivals jumped 30.6 percent to $14.87 billion, the Ministry of Trade, Industry and Resources said in a press release.
"South Korea's strong economic fundamentals appear to have helped attract foreign direct investment despite uncertainties stemming from prolonged tensions in the Middle East," the ministry said, reports Yonhap news agency.
FDI notifications for building or expanding manufacturing facilities accounted for 80 percent of the total, or $18.52 billion, with the remainder going toward mergers and acquisitions (M&As).
FDI notifications from the United States jumped 35.1 percent to $6.69 billion in the third quarter.
Those from the European Union, Japan and China, however, fell 3.9 percent, 47.9 percent and 39.7 percent, respectively, to $2.41 billion, $1.88 billion and $1.74 billion during the period.
The government will seek to attract foreign investment in semiconductors, physical AI and AI data centers, three areas it has identified as growth engines for Asia's fourth-largest economy, the ministry said.
South Korea will work to create a favourable business environment to support economic growth while addressing structural challenges, such as stagnant productivity, the finance minister said on Wednesday.
Finance Minister Lee Hyoung-il made the remarks during a meeting with representatives of South Korea's six major business lobbies, including SK Group Chairman Chey Tae-won, who heads the Korea Chamber of Commerce and Industry (KCCI).
"Recently, the South Korean economy has gained growth momentum despite a challenging economic environment, driven by the global semiconductor upcycle," Lee said in his opening remarks.
"However, structural challenges, such as a shrinking working-age population and stagnant productivity, have weakened growth potential, while disparities across various areas persist amid growing pressures on people's livelihoods, including rising consumer prices," Lee added.
— IANS
Leave a comment