FDI notifications in Korea rise 10.8 % in Q3

Foreign direct investment (FDI) in South Korea increased by 10.8% in the third quarter compared to the previous year, according to government data released on Wednesday. The surge was fueled by robust global demand for Korean semiconductors and equipment for artificial intelligence (AI) infrastructure. FDI notifications during the July-September period amounted to $22.9 billion, while FDI arrivals rose by 30.6% to $14.87 billion, the Ministry of Trade, Industry and Resources reported.

Korea's robust economic fundamentals were cited as a key factor in attracting foreign direct investment, despite uncertainties arising from prolonged tensions in the Middle East, as stated by the ministry. Of the total FDI notifications, 80% were directed towards building or expanding manufacturing facilities, totaling $18.52 billion, with the remaining portion allocated to mergers and acquisitions (M&As).

The United States was the primary source of FDI notifications, with inflows jumping by 35.1% to $6.69 billion in the third quarter. In contrast, FDI from the European Union, Japan, and China experienced declines of 3.9%, 47.9%, and 39.7%, respectively, totaling $2.41 billion, $1.88 billion, and $1.70 billion.