Foreign direct investments in Korea hit record $34.57 billion in 2024

Foreign direct investments in South Korea hit a record high in 2024, driven by Chinese and Japanese investors in the manufacturing sector, the Ministry of Trade, Industry and Energy said on Tuesday.

FDI pledges to Korea reached $34.57 billion last year, hitting a fresh record high for the fourth consecutive year, amid global economic uncertainties including the US presidential election, the ministry said.

Last year’s figure is up 5.7% from $32.7 billion the year prior.

Over the past four years, FDI pledges to Asia’s fourth-largest economy increased by 67%, the ministry said.

The amount of investment that actually arrived in Korea, however, fell 24.2% on-year to $14.7 billion.

MANUFACTURING SECTOR LEADS THE PACK

By industry, FDI pledges in the manufacturing sector jumped 21.6% to $14.49 billion, with those in the materials, parts and equipment segments surging 52.7% to $11.13 billion.

Foreign investment pledges in the electric and electronics sectors, including chips and rechargeable batteries, rose 29.4% to $5.26 billion.

Investment pledges in the bio-health industry more than tripled to $1.23 billion.

FDI pledges in the service sector edged up 0.3% to $17.83 billion, led by the real estate and communication industries, the ministry said.

SIGNIFICANT INVESTMENT GROWTH FROM JAPAN, CHINA

By country, fresh investment pledges from the US reached $5.24 billion in 2024, down 14.6% from a year earlier, while investment pledges from the European Union fell 18.1% to $5.1 billion.

Investment commitments from Japan soared 375.6% to $6.12 billion while those from China surged 266.1% to $5.79 billion.

“At a time when global production networks are being restructured, South Korea, with its robust manufacturing base and extensive free trade agreement network, is emerging as a kind of safe trade route,” said Jeong In-gyo, the deputy trade minister.

Write to In-Soo Nam at isnam@hankyung.com

Jennifer Nicholson-Breen edited this article.