Xinhua
03 Jul 2025, 12:15 GMT+10
SEOUL, July 3 (Xinhua) -- Foreign direct investment (FDI) in South Korea fell in double digits in the first half due to uncertainties at home and abroad, government data showed Thursday.
The reported FDI stood at 13.10 billion U.S. dollars in the January-June period, down 14.6 percent compared to the same period of last year, according to the Ministry of Trade, Industry and Energy.
The double-digit reduction was attributed to the U.S. tariffs imposition and political uncertainties at home, triggered by the ousted President Yoon Suk-yeol's botched martial law bid last December.
The FDI in the domestic manufacturing industry tumbled 34.5 percent to 5.33 billion dollars in the cited period.
Foreign investment in the electric and electronic sector dropped 61.6 percent to 1.40 billion dollars, and investment in the machinery equipment and medical precision instrument segment plunged 77.0 percent to 260 million dollars.
The FDI in the local service industry gained 10.6 percent to 7.09 billion dollars for the first six months of this year from a year earlier.
Investment in the distribution sector surged 73.3 percent to 1.32 billion dollars, while investment in the information and communication sector increased 9.4 percent to 1.09 billion dollars.
Direct investment from the United States and the European Union expanded in double figures to 3.13 billion dollars and 2.24 billion dollars each, but investment from Japan retreated in double digits to 2.16 billion dollars.
Greenfield investment, which involves factory construction and employment, decreased 4.5 percent to 10.97 billion dollars, while the merger and acquisition investment slumped 44.6 percent to 2.13 billion dollars.
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