FDI to Korea in 2014 hits record high $ 19 billion

Looking to hit the $ 20 billion line in 2015

Foreign Direct Investment (FDI) to Korea was recorded at an all-time high of USD 19 billion in 2014, according to the Ministry of Trade, Industry and Energy (MOTIE). It is expected that it will increase to the USD 20 billion line by the end of this year.

According to a report of the trade ministry last January 5th, FDI rates have steeply increased 30.6 percent from the USD 14.5 billion record of 2013. The wider network of free trade agreements that the country was able to achieve has been reaping benefits, attracting more investors. This record broke the previous USD 16.2 billion in 2012.

Following Singapore with 288 percent, China with 147.2 percent and the EU area with 35.4 percent, Korea fairs way better than the US that only grew 2.4 percent. On other hand, Japan’s continues to suffer a sluggish economy with a 7.5 percent decrease.

With increased economic cooperation, incentives and the recently concluded FTA with Korea, China was able to diversify its economic portfolio to include leisure resort investments to food production to fashion. Investments in the mobile gaming industry are seen to increase as well.

Spare parts production was recorded at 60.3 percent of total FDI, totaling to USD 7.9 billion. Software and business consulting in the service sector has seen big increases as well.

The trade ministry says that it will be focusing on customizing free trade agreements and activities to target countries to stimulate more economic activity.