$20.75 billion reported, negative for 2 consecutive years
Pandemic Aftermath 22.4% in the first half alone ↓,’Recovery’ in the second half
New industry, service industry increased, but’advanced’ small manager -7%
Global FDI to recover only after next year
It was found that foreign direct investment (FDI) introduced into the country last year dropped 11% from the previous year in the aftermath of a novel coronavirus infection (Corona 19).
The Ministry of Trade, Industry and Energy reported that the FDI that a foreign-invested company reported to the Korean government last year on the 12th (as reported) was $2.75 billion, down 11.1% from the previous year in 2019 ($2.33 billion). Revealed. The arrival-based FDI, which represents the amount of investment that has actually arrived in Korea by the time of aggregation, also reached 11,900 million dollars last year, down 17% from the previous year.
FDI (hereinafter referred to as the reporting standard) peaked at $26.9 billion in 2018, and then reached $23.33 billion in 2019 and $2.75 billion last year, which is a downward trend for two consecutive years.
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Last year’s FDI was sluggish in the first half alone, recording $7.66 billion, down 22.4% from the same period last year. This is because Corona 19 enters into a global pandemic (pandemic) and the way to maintain foreign investment is virtually blocked. However, in the second half of last year, the decline decreased by 2.8% from a year ago to reach $13 billion. An official from the Ministry of Industry explained, “Considering that last year’s global FDI declined by 49% in the first half only due to Corona 19, Korea’s FDI decline is relatively good.”
By investment sector, investment in new industries related to the fourth industry such as artificial intelligence (AI), big data, cloud, eco-friendly car, and biotechnology increased 9.3% from 2019, which recorded $7.7 billion last year, to $8.42 billion last year. Manufacturing and services also increased 28.1% and 8.6% compared to the previous year. A total of 7 cases in which foreign-invested companies have invested in materials for next-generation secondary batteries and parts exclusively for eco-friendly vehicles using undisposed profit surplus were also counted at a total of $100 million. The government revised the Foreign Investment Promotion Act in August last year to recognize the reinvestment of undisposable retained earnings by foreign-invested companies as foreign investment.
However, FDI in materials, parts, and equipment, which is the government’s focus on attracting foreign capital, fell 7% from the previous year to $3.81 billion last year.
The government predicted that the prospect of FDI earnings this year will also be uncertain due to the prolonged Corona 19. In fact, the United Nations Conference on Trade and Development (UNCTAD) predicted that the global FDI will decrease by up to 40% last year and then an additional 5-10% decrease this year. It is expected that global FDI will recover only after next year.
An official from the Ministry of Industry said, “Considering the internal and external environment such as Corona 19 and global economic uncertainty, FDI is not expected to be attracted this year.” /Sejong = Reporter Yangjun Cho [email protected]
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