Foreign investment in S. Korea tumbles in Q1

By Lee Joon-seung
SEOUL, April 2 (Yonhap) -- Foreign direct investment (FDI) in South Korea plunged
nearly 40 percent on-year in the first quarter due to the global economic slump,
a government report showed Thursday.
FDI reported by businesses totaled US$1.67 billion in the January-March period,
down 38.2 percent from $2.71 billion a year earlier, according to the report by
the Ministry of Knowledge Economy.
"The drop is directly related to worsening investment conditions worldwide, with
most countries reporting a decrease in FDI," the report said.
Despite the overall decline, foreign investment in the manufacturing sector
surged 26 percent on-year to $913 million, with fresh FDI topping $1.49 billion.
Japanese investment shot up 162.8 percent on-year to $661 million, while FDI from
the United States and the European Union fell 21.0 percent and 65.2 percent,
respectively, according to the report.
The disappointing tally for the first quarter may affect the government's plan to
attract $12.5 billion in FDI for 2009, up from the $11.7 billion estimate for
last year. Seoul is actively seeking to attract FDI to help make up for sluggish
local corporate investment.
yonngong@yna.co.kr
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