(image: Korea Bizwire)
SEOUL, June 20 (Korea Bizwire) — South Korea’s overseas direct investment dipped 41.6 percent in the first quarter of 2023 from a year earlier, data showed Tuesday, led by the manufacturing and property sectors.
The value of overseas investments by South Korean companies reached US$16.49 billion, down 41.6 percent from a year earlier, according to the data compiled by the Ministry of Economy and Finance.
The ministry attributed the decrease to a base effect, considering major investment projects rolled out in the semiconductor sector in the previous year.
It was notable, however, that the amount increased from the $14.87 billion tallied in the October-December period of 2022, snapping four consecutive quarters of decline, the ministry said.
“(The on-quarter gain) indicates that the decline in investor sentiment caused by elevated global interest rates and the prolonged conflict between Russia and Ukraine has come to an end,” it added.
By sector, the amount of overseas investment in the financial and insurance industries reached $6.43 billion, down 20.1 percent on-year.
The investment in the manufacturing segment slipped 52.4 percent to $5.47 billion, while that in the real estate industry fell 71.1 percent to $801 million.
The amount of investment rolled out in the mining sector moved up 15.1 percent over the period to $1.13 billion.
By destination, investment in the United States moved down 6.2 percent on-year in the first quarter to $8.53 billion, while that in China, the top trading partner, slumped 89.2 percent to just $670 million.
The Cayman Islands accounted for $1.28 billion, down 43.3 percent on-year, the report showed.
“The government plans to expand communication and cooperation with major investment partners, including the U.S. and Poland, to benefit South Korean companies,” the ministry added.
(Yonhap)
