KOREAN NET

Foreign direct investment last year marked a record-high USD 34.57 billion. (iclickart) *[Unauthorized reproduction and redistribution of the above photo is strictly prohibited under copyright laws and regulations.]

By Koh Hyunjeong

Pledged foreign direct investment (FDI) last year marked a record-high USD 34.57 billion, led by cutting-edge industries such as semiconductors and bio.

The Ministry of Trade, Industry and Energy on Jan. 7 said this in its report on 2024 FDI trends.

The FDI figure last year rose 5.7% from USD 32.71 billion in 2023, its fourth consecutive record-setting year starting with USD 29.51 billion in 2021.

By sector, manufacturing attracted the most FDI with USD 14.49 billion, up 21.6% year on year. In the sector, investment in materials, component and equipment grew 52.7% to a record-high USD 11.13 billion.

FDI in cutting-edge industries saw big leaps like semiconductors, which grew 46.5% to USD 1.33 billion, and bio, which skyrocketed 254.2% to USD 1.23 billion.

By country, Japan and China posted huge increases in FDI in Korea, with USD 6.12 billion from the former, up a phenomenal 375.6%, and USD 5.79 billion from the latter, up 266.1%.

Greenfield investment, or a type of FDI in which a parent company creates or expands a subsidiary in another country, for new construction or expansion of plants marked USD 26.7 billion, up 13.5% and posting a record high. Such growth is expected to help create jobs and stimulate regional economies.

Minister of Trade, Industry and Energy Ahn Dukgeun said, "We will do everything we can to expand communication with global investors, raise incentives for cutting-edge industries and form an investment environment that meets global standards."

hjkoh@korea.kr