The Ministry of Trade, Industry and Energy announced on October 7 that the cumulative foreign direct investments (FDIs) pledged to Korea over the first three quarters of the year advanced 41.3 percent to USD 18.2 billion. The FDIs that actually arrived in Korea over the same period expanded 40.9 percent to $11.7 billion.
Both FDI pledges and arrivals recorded the second highest cumulative values for the first three quarters on record.
Advanced technologies continued to attract strong investments in the K-New Deal, new industry, and materials, parts and equipment sectors. New investments in biopharmaceutical raw material production facilities and antibody treatment R&D centers are expected to contribute to the implementation of the K-global vaccine hub strategy.
By industry, investment pledged to the manufacturing sector contracted 18.1 percent to $3.1 billion for the first three quarters of 2021. However, the FDI arrived gained 31.1 percent to $2.2 billion. Investments to electrical and electronics, transport machinery, and metal products experienced growth, while those to machine equipment/precision medical devices, food products, and pharmaceuticals experienced declines.
The service sector saw a cumulative pledged investment of $14.3 billion, up 60.8 percent from the same period last year. The FDI arrived jumped 43.4 percent to $9.4 billion. Investments in information and communications technology, business support and leases, and wholesale/retail moved up.
By region, FDI commitments from the U.S. to Korea over the first three quarters rose 8.6 percent to $3.3 billion and those arrived spiked 113.0 percent to $1.5 billion.
Investment from the EU soared 173.2 percent to $7.3 billion and that actually arrived amounted to $5.6 billion, up 134.2 percent.
FDI pledges from Japan to Korea jumped 33.8 percent to $729 million, and those actually arrived increased 15.3 percent to $547 million.
Cumulative investments pledged from China and other regions (including Hong Kong, Singapore, Taiwan, and Malaysia) so far gained 25.7 percent to $5.1 billion, while those actually arrived fell 11.5 percent to $2.3 billion.
By type, greenfield investment pledged to Korea saw a 20.8 percent growth to $11.2 billion, and that arrived saw a 29.9 percent increase to $6.0 billion.
For M&A investments, FDI pledged recorded $7.0 billion, posting a 94.3 percent rise. M&A investments that arrived recorded $5.7 billion, up 54.5 percent from the first three quarters of last year.