Foreign direct investment set new record last month

The Korea Herald 2000. 6.8

    Korea saw the highest-ever cases of foreign direct investment (FDI) in May, a trend that the Ministry of Commerce, Industry and Energy said reflected strong confidence among foreign investors regarding the Korean economy.

    A total of 425 separate cases of FDI were recorded last month, totaling $815 million, up 23.5 percent from the same period last year, the ministry said yesterday. The investments raised the cumulative FDI amount to $4.5 billion, a 31-percent increase compared to the same period last year, the ministry said.

    "In spite of recent rumors of an economic crisis, the steady increase in FDI reflects strong foreign investor confidence in the Korean economy," the ministry said.

    But in terms of amount, the May FDI figures marked a steady decline since January of this year. FDI in January totaled $1.12 billion and $1.01 billion in April.

    FDI into Korea's manufacturing companies last month surged 118 percent on year to total $2.44 billion, while direct investments into the nation's service industry fell 10.3 percent over the same period, the ministry said.

    Per region, FDI from Japan last month surged 175 percent on year to total $669 million, while direct investments from the United States and the European Union fell over 10 percent over the same period.