Low direct investment of South Korea for the second year
On March 16 / WAM / South Korea’s direct investment decreased for the second year in a row in 2024, amid the constant geopolitical uncertainty, but the pace of decline slowed compared to the previous year.
According to the South Korean Ministry of Finance, the foreign investments of South Korean companies decreased by 1.8% on an annual basis to reach 63.95 billion US dollars last year, and the number of 2024 represents a slowdown compared to a decrease of 22.2% year on year in the previous year, which is the first annual decrease since 2020.
Yonhap News Agency reported that the slow decline in growth is due to an increase in investment in alternative assets of pension funds in advanced economies and the continuation of institutional investments in super technological industries, including semiconductor and batteries.
At the level of the sectors, foreign investments increased in most industries last year, but investment in the manufacturing sector decreased by 21.6 % on an annual basis, eliminating the impact of gains in other sectors.
The United States acquired the largest share of South Korean investments abroad, receiving $ 25.88 billion in 2024, followed by Europe with $ 13.87 billion.
Europe’s share of total investments increased by 4.7 percentage points, from 17% to 21.7%.
The Ministry of Finance said that the government will continue to cooperate with the main investment destinations to ensure the ability of South Korean companies to maintain stable commercial operations amid the escalation of global protectionism and restructure supply chains.
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