ΆΓ Foreign Investment Rises 2.2 Pct in July

 KoreaTimes 2000.08.07

The inbound foreign direct investment amounted to $2.12 billion in July, a slight increase of 2.2 percent from a year earlier.

The Ministry of Commerce, Industry and Energy (MOCIE) said yesterday that the cumulative foreign investment during the January-July period reached $7.85 billion, up 20.0 percent year-on-year.

``Compared with the aggregate investment volume in the first seven- month period, the growth rate of 2.2 percent in July alone is a slight one,'' said the ministry.

But the investment peaked in July in terms of value, surpassing $2.1 billion, and the growth rate remained lower due to the relatively high performance in the same month last year. Japanese investors poured $1.18 in investments into the nation during the January-July period, registering a 273.9 percent growth on a year-to-year basis. Investments from ``tax heaven'' areas like Bermuda and the Virgin Islands doubled in the same period.

But investments from the United States and the European Union dwindled by up to 64 percent from a year earlier, as the related nations have begun to invest into the nation indirectly, through these tax heaven areas, according to the ministry.

Investments through the acquisition of new stakes rose 46 percent from last year, to reach $7.37 billion in the January-July period.

Small investments of less than $5 million for small and medium-sized companies surged 158 percent from a year earlier, while investments between $5 to $10 million increased 59 percent.

On the other hand, investments between $10 and $100 million contracted 9.9 percent.