Foreign direct investment in S. Korea jumps on recovery hopes

SEOUL, Sept. 24 (Yonhap) -- Foreign investment made in South Korea jumped over 30
percent during the first seven months of this year amid growing expectations the
Korean economy will make a fast recovery, a report showed Thursday.

According to the report by the finance ministry, foreign direct investment in
South Korea amounted to US$6.79 billion during the January-July period, up 32.4
percent from the same period a year earlier.
This marked the largest ever gain tallied during the cited period in the past
nine years.
The steep increase stemmed mostly from a rise in investment from Japan and the
European Union, whose investment in South Korea jumped 148.8 percent and 32.7
percent, respectively, in the months up till July, the report showed.
Experts say that foreigners seemed to have expanded investment here, encouraged
by growing expectations that South Korea's economy will make a
faster-than-expected rebound from its downturn.
The global economic slump, however, kept South Korean companies and individuals
from opening their wallets abroad.
South Korea's outbound investments totaled $10.1 billion during the first seven
months of this year, down 51.8 percent from the same period a year ago, the
report showed.
The contraction compared with on-year investment growth of 51.9 percent and 21.7
percent recorded in 2007 and 2008, respectively, according to the report.
kokobj@yna.co.kr
(END)