ΆΓ  Foreign direct investments totaled $15.69 bil. in 2000     

Korea Herald 2001.1.5

Foreign direct investment (FDI) reached $15.69 billion last year, up 1 percent from $15.54 a year earlier, the Ministry of Commerce, Industry and Energy said yesterday.

The number of FDI cases came to 4,136, nearly double the 2,102 reported in the previous year.

Officials said that small-denomination investments below $5 million accounted for 93.8 percent of the total, up 6 percentage points from a year ago.

Investments worth between $5 million and $10 million occupied 2.3 percent, those between $10 million and $100 million 3.1 percent and those totaling over $100 million 0.8 percent, they said.

By region, investments from the European Union (EU) accounted for 29.4 percent of the total amount or $4.6 billion, followed by the United States with 18.6 percent or $2.91 billion. Japan placed third with 15.6 percent or $2.44 billion.

The ministry analyzed that investments from the EU and the U.S. declined by 26.4 percent and 22 percent, respectively, while those from Japan increased 39.9 percent.

By sector, the service industry received the most 54.6 percent or $8.5 billion of investments and the manufacturing industry took up 45.4 percent or $7.1 billion. Investments in primary industries such as agriculture, fisheries and mining came to only $20 million.

The ministry said, 89.7 percent of foreigners made their investments in the form of acquiring shares in newly created firms or participation in capital increases of established firms, with only 8.1 percent of foreign capital coming in through M&As.

The ministry set this year's foreign investment target at $15 billion, down about $1 billion from last year's, but predicted that the figure could reach only $13 billion, depending on the nation's economic conditions. (SHS)