Foreign investment in S. Korea dips 1.9 pct to US$11.4 bln in 2009

SEOUL, Jan. 5 (Yonhap) -- South Korea's foreign direct investment (FDI) dipped
1.9 percent from a year earlier in 2009 as companies tightened spending amid an
overall slump in the global economy, a government report said Tuesday.

The Ministry of Knowledge Economy said foreign direct investment in South Korea
reached US$11.48 billion last year, marking the second straight year FDI topped
the $11 billion mark, as businesses and investors struggled to cope with the
financial crisis brought on by the collapse of Lehman Brothers Holding Inc.
But the decrease was far smaller than the 41 percent drop in foreign direct
investment suffered last year by the countries of the Organization for Economic
Cooperation and Development and large developing economies such as China, India
and Brazil.
Foreign direct investment in India and Brazil is estimated to have fallen around
22 percent and 44 percent on-year, respectively. in the first 10 months of 2009,
while China may have posted negative growth of 9.9 percent up till November.
It added that fresh "greenfield" investments shot up 11.4 percent compared to the
previous year to $8.11 billion, with the total poured into manufacturing surging
23.9 percent.
Manufacturing investments generally helps create more jobs and can strengthen the
overall industrial foundation of the country.
"On the whole, the 'quality' of investments improved significantly," said Park
Soon-kee, head of the ministry's investment policy division.
He said that in the case of South Korea, the relatively weakness of its currency
vis-a-vis the dollar and faster-than-expected recovery helped buoy foreign direct
investment.
For 2010, the official said that Seoul wants to attract around $13 billion worth
of foreign direct investment, up 13.2 percent from 2009.
The ministry showed confidence the country will achieve the increase since
companies around the world are likely to recover from last year's lethargy and
start to look for new opportunities.
yonngong@yna.co.kr
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