Foreign direct investment in Korea slows down in May

The Korea Herald 2000. 6. 1

    Foreign direct investment in Korea, which had surged up to 102 percent on year at one time during the first quarter of this year, slowed down drastically last month, leading to speculation that confidence by overseas investors in the nation's economy were waning.

    The Ministry of Commerce, Industry and Energy said yesterday that FDI in May totaled $660 million, just $380,000 more than the same period last year.

    "FDI has fallen in May, after surging until April," a ministry official said. "At this point, it is unclear whether the decline reflects problems with foreign investor confidence in Korea."

    But the official stressed that FDI levels are still rising.

    So far this year, FDI has increased in Korea's manufacturing companies and from nations other than the United States and the European Union, the ministry said. (SL)