ID :
76598
Sun, 08/23/2009 - 20:02
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https://www.oananews.org//node/76598
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Foreign direct investment in S. Korea up sharply in first 7 months of 2009
By Lee Joon-seung
SEOUL, Aug. 23 (Yonhap) -- Foreign direct investment (FDI) in South Korea shot up
32.4 percent on-year in the first seven months of 2009 due to the country's
growth potential, a government report said Sunday.
South Korea attracted US$6.79 billion in future FDI in the January-July period,
compared to $5.13 billion an year earlier, according to the preliminary report by
the Ministry of Knowledge Economy.
"This is the largest gain in FDI reported for the seven-month period since 2000
and reflects growing overseas confidence in the South Korean economy, which is
making a comeback after being hit hard by the worldwide economic slump," Park
Soon-kee, head of the ministry's investment policy division, said. He also said
the relatively weak won has fueled inbound investment.
The official said that while investments plunged 38.2 percent in the first
quarter, expectations of business opportunities related to the government's plan
to build the country's "green" growth industry attracted overseas investors in
the following months. It reached $1.42 billion in June and just under $2.15
billion last month.
Of the total that may arrive in the country in the future, $1.75 billion has been
pledged for investment in the manufacturing sector, with around $5.01 billion to
be used to expand foreign business presence in the country's service sector.
The ministry in charge of the country's industrial policies and investment
promotion said the rise in FDI contrasts with negative growth reported by
neighboring countries like Japan, China and Vietnam.
Inbound investment to Japan and China fell 63.2 percent and 20.3 percent,
respectively, in the same seven months, while that to Vietnam nosedived 89.0
percent compared to the year before.
It said that at the present rate, the country will be able to attract more than
$12.5 billion won in FDI for the entire year.
The ministry, meanwhile, said it will redouble efforts to attract FDI by
increasing cash grant incentives, tax breaks and administrative support to
prospective investors.
Investment is critical for national growth since it can create more jobs and fuel
overall business opportunities.
yonngong@yna.co.kr
(END)
SEOUL, Aug. 23 (Yonhap) -- Foreign direct investment (FDI) in South Korea shot up
32.4 percent on-year in the first seven months of 2009 due to the country's
growth potential, a government report said Sunday.
South Korea attracted US$6.79 billion in future FDI in the January-July period,
compared to $5.13 billion an year earlier, according to the preliminary report by
the Ministry of Knowledge Economy.
"This is the largest gain in FDI reported for the seven-month period since 2000
and reflects growing overseas confidence in the South Korean economy, which is
making a comeback after being hit hard by the worldwide economic slump," Park
Soon-kee, head of the ministry's investment policy division, said. He also said
the relatively weak won has fueled inbound investment.
The official said that while investments plunged 38.2 percent in the first
quarter, expectations of business opportunities related to the government's plan
to build the country's "green" growth industry attracted overseas investors in
the following months. It reached $1.42 billion in June and just under $2.15
billion last month.
Of the total that may arrive in the country in the future, $1.75 billion has been
pledged for investment in the manufacturing sector, with around $5.01 billion to
be used to expand foreign business presence in the country's service sector.
The ministry in charge of the country's industrial policies and investment
promotion said the rise in FDI contrasts with negative growth reported by
neighboring countries like Japan, China and Vietnam.
Inbound investment to Japan and China fell 63.2 percent and 20.3 percent,
respectively, in the same seven months, while that to Vietnam nosedived 89.0
percent compared to the year before.
It said that at the present rate, the country will be able to attract more than
$12.5 billion won in FDI for the entire year.
The ministry, meanwhile, said it will redouble efforts to attract FDI by
increasing cash grant incentives, tax breaks and administrative support to
prospective investors.
Investment is critical for national growth since it can create more jobs and fuel
overall business opportunities.
yonngong@yna.co.kr
(END)
