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| ▲ A business agreement (MOU) signing ceremony between the city of Ulsan and a private investor for the creation of an Ulsan floating offshore wind farm held at Ulsan City Hall in 2019. Gyeongsang Ilbo material photo | ||
Reported 368% year-on-year ↓ $175 million
Normal progress of investment business based on arrival
$491 million… 38% increase over the previous year
Likely to increase investment in new and renewable energy business
In the aftermath of the new coronavirus infection (Corona 19) pandemic, foreign direct investment (FDI) based on reporting standards in Ulsan last year was found to have decreased sharply. However, the amount of foreign direct investment arriving in Ulsan for the existing project (in progress) increased, and it was analyzed that the foreign investment project is being carried out normally despite the coronavirus.
According to the data of ‘2020 Foreign Direct Investment Trends’ released by the Ministry of Trade, Industry and Energy on the 12th, the amount of foreign direct investment in Ulsan based on prior notification was $175 million in 14 cases last year, a drop of 368% ($654 million) from the previous year did. As of 2019, foreign direct investment amounted to $820 million in 13 cases. Ulsan also could not escape the contraction of foreign direct investment caused by the corona pandemic.
Foreign direct investment (after 2010), based on prior notification in Ulsan, peaked in 2014 ($2,433 million in 23 cases) and is showing a gradual decline.
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Foreign direct investment in Ulsan fell sharply from △22 cases in 2015 to 973 million dollars △9 cases in 2016 to 275 million dollars. It seemed to rebound strongly from $417 million in 13 cases in 2017 to $1,569 billion in 2018, but it fell to $820 million in 13 cases in 2019 and less than $200 million last year.
As a result, the amount of foreign direct investment reported from the establishment of the industrial city in Ulsan in 1962 until last year totaled 533 cases, amounting to $11.377 billion.
On the other hand, as of the actual arrival in Ulsan, foreign direct investment increased from the previous year, and it was analyzed that the Ulsan investment project is proceeding normally despite the corona pandemic.
As of last year’s arrival in Ulsan, foreign direct investment amounted to $491 million in nine cases, an increase of 38.3% ($136 million) from the previous year. The amount of foreign investment on arrival in 2019 is 355 million won per 11 cases.
Based on the arrival amount, the amount of foreign direct investment in Ulsan (since 2010) peaked in 2015 (19 cases $2,854 billion) △12 cases in 2017 $455 million △$633 million in 2018 △2019 11 cases, $353 million △$499 million to $500 million in 2020 is rising and falling.
An official from Ulsan City said, “Amid the corona crisis, there are many places where other local governments hold their business and do not arrive even after reporting prior investment, but the amount of foreign investment in Ulsan has increased, and the business is working normally.” A city official said that if the new and renewable energy business, such as the creation of a floating offshore wind farm, which is the focus of Ulsan, is promoted in stages, foreign direct investment reporting and capital investment will increase further.
In the Ulsan area, since the establishment of the industrial city in 1962, a total of 216 cases of foreign direct investment amounted to 8,454 billion dollars have arrived until last year.
Meanwhile, foreign direct investment (FDI) based on reporting to Korea last year was $2.75 billion, down 11.1% from the previous year. FDI has declined for the second year in a row since 2018, a record high.
Last year’s FDI is characterized by increased investments in new industries related to the 4th industrial revolution, such as artificial intelligence (AI), big data, cloud, eco-friendly cars, and bio.
In terms of actual investment arrival, it was down 17.0% to $11.90 billion. Reporter Kim Chang-sik
Gyeongsang Ilbo, KSILBO