ΆΓ  Foreign Investments Hits Record High
       - Japanese Investment Surging- By Nho Joon-hun Staff Reporter 

Korea Times 2001.1.4

Foreign direct investment here hit a record high of $15,690 million last year, slightly higher than the $15,541 million in 1999, the Ministry of Commerce, Industry and Energy said yesterday.

The fact that foreign investments reached a record high is significant in that it occurred in a year of economic uncertainties and severe labor unrest in the second half, ministry officials said.

Last year was the fourth consecutive year in which foreign direct investment increased, rising from the $7 billion in 1997 and $8.9 billion in 1998 to $15.5 billion in 1999

``Another significant aspect in foreign investment trends is the sharp increase in the number of cases which rose to 4,136 last year, nearly double the 2,102 of 1999,'' one investment official said.

However, it is also noteworthy that while the total investment by quarter continued to increase, the rate of increase fell, shrinking by 25.6 percent in the fourth quarter.

``We are not discouraged by the decline in the rate of increase since the figures are relative. What is important is the fact that the absolute amount is constantly increasing,'' the official said.

Looking at other trends in foreign direct investments last year, those from Japan expanded by as much as 39.9 percent from the $1.75 billion in 1999 to $2.45 billion last year.

On the other hand, investments from the European Union and the United States fell by 26.4 and 22.0 percent respectively while those from other regions increased by 50.8 percent.

``In addition, we have also noticed a drastic increase in the number of investments that are smaller than $5 million, which is a very positive sign,'' the official said.

Foreign direct investments in the service sector continued to increase significantly in the manufacturing sector as well, creating a desirable balance, he explained.

As for this year, the investment official said foreign investments should top $15 billion again, given that labor-management relations remain stable and economic conditions improve.

``There are some major investments currently under negotiation, including the injection of $5-$6 billion in SK Telecom by NTT DoCoMo of Japan,'' the official said.