[세종=뉴스핌] Reporter Eun-Seok Lim = In the aftermath of’Coronavirus Infectious Disease-19 (Corona 19)’, the amount of foreign direct investment (FDI) reported last year was $2.75 billion, down 11.1% from a year ago. The arrival amount (actual investment execution) was also found to be $11.90 billion, a 17% decrease from the previous year.
According to the ‘2020 FDI Performance’ released by the Ministry of Trade, Industry and Energy on the 12th, the FDI performance reported last year was $2.75 billion, down 11.1% from the previous year. The arrival standard was down 17% to $11.90 billion.
Last year’s FDI declined sharply in the first half of the year amid the Corona 19 situation, but entered a recovery trend in the second half and succeeded in achieving ’20 billion dollars for six consecutive years’ since 2015. As the spread of Corona 19 began in earnest, FDI in the first half declined significantly, but the decline in the second half was greatly mitigated through online IR such as K-quarantine, video counseling, webinars, and strategic attraction efforts for promising companies.
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| Reported amount by business type of foreign direct investment [자료=산업통상자원부] 2021.01.12 [email protected] |
The Ministry of Industry analyzed that despite the global economic crisis caused by Corona 19, it has attracted foreign direct investment of 20 billion dollars for six consecutive years, confirming that Korea is a safe investment destination.
Last year’s FDI features ▲Increased investment in new industries related to the 4th industrial revolution ▲Increased growth in the second half of high-tech materials, parts and equipment for securing advanced technologies and stable supply ▲Increased investment in the Green New Deal for a carbon-neutral society.
In the new industry, the scale and proportion of investments related to the fourth industrial revolution such as artificial intelligence (AI), big data, cloud, eco-friendly cars, and biotechnology have all increased. The reported size was $8.42 billion, an increase of 9.3% from $7.7 billion last year. The share was also 40.6%, up 7.6 percentage points (p) from 33% a year ago. The arrival size was $4.95 billion, which was 3.3% less than $5.12 billion last year, but the proportion was 44.6%, up 6.3%p from 38.3%.
The continued investment of cutting-edge subsidiaries such as semiconductors, secondary batteries, and eco-friendly car parts is contributing to the response to Japanese export regulations and localization of advanced technologies. In particular, foreign direct investment in the field of general managers, which significantly decreased by 43.7% in the first half compared to the previous year, increased 30.9% in the second half, and the decrease compared to the previous year was moderate.
Foreign investment was found to have contributed to the transformation of an eco-friendly and low-carbon society by increasing investment to expand infrastructure and services in the field of renewable energy and resource recycling. Investments in new and renewable energy such as wind power and solar power, and green industry-related fields such as water treatment and resource recycling have more than doubled from the previous year to 480 million dollars from 240 million dollars a year ago.
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| Arrival amount by business type of foreign direct investment [자료=산업통상자원부] 2021.01.12 [email protected] |
Looking at FDI trends by industry last year, both the manufacturing and service industries reported a decrease in reported amounts compared to the previous year. The arrival amount for the manufacturing industry also decreased significantly, while the arrival amount for the service industry increased.
The reported amount of the manufacturing industry ($5.97 billion) and the amount of arrival ($2.1 billion) decreased by 27.4% and 57.4% from the previous year, respectively. In the service industry, the reported amount ($1.45 billion) decreased by 2.7%, but the arrival amount ($8.66 billion) increased by 13%.
FDI by country showed a decrease in both the reported amount and the amount of arrival in all regions excluding Greater China and other countries.
In the case of Greater China, the reported amount was $5.46 billion, an increase of 26.5% from the previous year, and the arrival amount was also $2.94 billion, an increase of 34.4%. Other countries also increased by 25.9% and 101.6%, respectively, to $4.54 billion in reported amount and $2.96 billion in arrival amount.
The reported amounts in the United States, the European Union (EU) and Japan were $5.3 billion, $4.72 billion, and $730 million, respectively, down 22.5%, 33.8%, and 49.1%. The arrival amount also decreased by 34.5%, 47.0%, and 57.9% to $910 million, $3.78 billion, and $500 million, respectively.
An official from the Ministry of Industry said, “In the future, we will actively discover and attract investments that contribute to the advancement of our industry, such as new industries, cutting-edge general managers, R&D, and Green New Deal, and strive for the’FDI Plus Transition’.”