SEOUL, March 24 (Korea Bizwire) – South Korea’s overseas direct investment slightly increased in 2022 on-year to a fresh high on the back of the chips and automobile industries, although the overall growth was limited in the face of economic uncertainties, data showed Friday.
The value of investments made overseas by South Korean companies reached US$77.17 billion, up 0.4 percent from a year earlier, according to the data compiled by the Ministry of Economy and Finance.
The amount, however, fell throughout 2022 after hitting a quarterly high of $26.18 billion in the January-March period, it added.
“After hitting a new record earlier in 2022 amid eased concerns over the COVID-19 pandemic, the rising global interest rates, the protracted war between Russia and Ukraine, and fears over a recession have weighed down on investors’ sentiment, leading to an annual decline,” it said.
By sector, investment in the manufacturing sector reached $23.5 billion, up 28.9 percent from a year earlier, with the financial and insurance industry reporting $29.7 billion, down 0.6 percent.
Those made in the information and communication sector, on the other hand, dipped 47.1 percent to 3.67 billion, while the real estate industry posted a 0.6 percent growth over the period to $7 billion.
By destination, South Korea’s direct investment in the United States reached $27.7 billion in 2022, down 0.6 percent from the previous year. Those in China, the top trading partner, slipped 2.2 percent to $6.5 billion.
The Cayman Islands accounted for $9.38 billion, down 13.8 percent on-year, the report added.