FDI Totals $2.04 Bil. in 1st Quarter

KOREA Herald 2000/05/08

    Foreign direct investments in Korea stood at $1 billion in April on the report basis, up 23.3 percent from a year earlier, the Ministry of Commerce, Industry and Energy said yesterday.

    The April figure boosted the total FDI during the first four months of the year to $3.74 billion, up 32.8 percent on year.

    In April, a total of 287 investments were reported, more than 100 above the monthly average of 175 recorded last year. The ministry noted that small-sum investments below $5 million were on a steady rise.

    By sector, investments in manufacturing during the first four months surged 150.7 percent to $2.3 billion while investments in service sector fell by 24.2 percent to $1.43 billion, the ministry said.

    By country, the European Union posted a drop of 61.2 percent, or $465 million, while the U.S. marked an 8.9 percent fall to $782 million. In contrast, investments from Japan surged 82.1 percent to $335 million.

    Foreign investment through acquisition of new shares surged 72.3 percent to $3.43 billion during the first four months, while investments through acquisition of existing shares in local companies were down 50.7 percent to $265 million.

    Foreign investors provided $39 million in long-term loans to their subsidiaries in Korea, down 86.3 percent from a year ago. Loans from foreign parent companies to their overseas affiliates are counted as FDI.

    Major foreign investments in April included $350 million in Anam Semiconductors by AKI of the U.S. and a $50 million investment in Korea Information and Communication by Capital Communications CDPQ of Canada.