FDI notifications in Korea rise 10.8 % in Q3

Foreign direct investment (FDI) notifications in South Korea increased by 10.8 percent in the third quarter year-on-year, according to government data. The surge was primarily fueled by robust global demand for Korean semiconductors and equipment for artificial intelligence (AI) infrastructure. In the July-September period, FDI notifications reached a total of $22.9 billion, while FDI arrivals surged by 30.6 percent to $14.87 billion, reported the Ministry of Trade, Industry and Resources.

Despite geopolitical uncertainties stemming from Middle East tensions, Korea's robust economic fundamentals have managed to attract foreign direct investment. Manufacturing facilities expansions, accounting for 80 percent of the total FDI notifications, or $18.52 billion, saw the highest inflow. The rest of the investment was allocated towards mergers and acquisitions (M&As).

The United States led the foreign investors with a 35.1 percent increase in FDI notifications to $6.69 billion in the third quarter. Conversely, FDI notifications from the European Union, Japan, and China experienced declines of 3.9 percent, 47.9 percent, and 39.7 percent, respectively, amounting to $2.41 billion, $1.88 billion, and an unspecified amount.