This file photo, provided by Hyundai Motor Co. on Sept. 19, 2024, shows a factory of the South Korean carmaker in the Czech Republic. (Image courtesy of Yonhap)
SEOUL, Dec. 13 (Korea Bizwire) – South Korea’s overseas direct investment fell for the third consecutive quarter in the July-September period amid uncertainties in the global economy and geopolitical risks, the finance ministry said Friday.
Investments made by South Korean companies overseas totaled US$14.19 billion in the third quarter, down 6 percent from $15.1 billion a year earlier, according to data compiled by the Ministry of Economy and Finance.
The figure has been on a constant decline since the first quarter of this year.
“The decline appears to have been affected by uncertainties in the global economy, the still-high level of interest rates and geopolitical risks, among other factors,” the ministry said in a release.
By sector, offshore investment in the insurance and financial sector dropped 13.7 percent on-year to $6.06 billion, and that in the manufacturing sector sank 20.7 percent to $3.97 billion.
But the mining sector saw investment jump 161.8 percent to $1.29 billion, and investment in the information and telecommunications segment more than quadrupled from a year earlier to $850 million in the third quarter.
The United States remained the top investment destination for South Korea, though the third-quarter investment in the U.S. dipped 44.6 percent to $3.79 billion.
Investment in the Cayman Islands fell 17.3 percent to $1.66 billion, and that in Luxembourg went down 9.7 percent to $1.41 billion, the data showed.
“The government will boost cooperation and communications with major partner nations to help ensure stable business circumstances for our companies,” the ministry said.
(Yonhap)
