Throughout this year, Korean businesses and investors in the foreign market have managed to make the largest foreign direct investment, according to data. This is a blunt contrast to the diminishing foreign direct investment in the Korean market.
On Friday, the Ministry of Economy and Finance publicized how the volume of Koreans’ foreign direct investment in foreign nations rose by 13.3% to reach $15.1 billion year-on-year in the Q2 of 2019, resulting in the greatest recorded figure since 1980 when these data were first acquired. In the Q1 of this year, the figure was a record $14.11 billion, from which the second quarter’s volume increased by 6.3% to reach another record figure.
Ever since 2018’s Q2, the foreign direct investment by Koreans in other nations has bounced right back. Between 2017’s Q4 and 2018’s Q1, the investment volume noted a negative year-on-year growth. It then started increasing by 20 to 30% on quarterly basis since 2018’s Q2.
According to an analysis by the Hyundai Research Institute, Korean businesses are focusing more on other nations from the local market due to the stiff labor market, regulation stresses and inefficient regulation reforms.
Investments to the United States increased 14.7% from the same period of the previous year, to reach $3.2 billion. This was due to the raised number of large-scale M&A agreements by Korean companies intended to widen their network of sales. Relative to the previous year, Korea’s Investments to China surged 123.7%, to $2.01 billion, as local dealers ramped up the manufacturing of semiconductors and electronics equipment. On the other hand, Korea’s investment in the Cayman Islands fell by 25.8% to reach $2.41 billion year-on-year.
Investment in the real estate sector fell 2.1% to reach $1.38 billion.