FDI pledges drop 9.1 pct in
SEJONG-- New foreign direct investment (FDI) pledged to come into South Korea fell 9.1 percent in the first six months of the year, amid rising uncertainties at home and abroad, the government said Tuesday.
Fresh FDI commitments made in the January-June period came to US$9.6 billion, down from $10.56 billion a year earlier, according to the Ministry of Trade, Industry and Energy.
The amount of new FDI actually entering the country also retreated 4.4 percent on-year to $4.96 billion over the cited period, the ministry said.
New FDI pledges from the United States rose 35 percent on-year to $2.45 billion over the cited period, while Chinese investment, including from Hong Kong and Singapore, edged up 0.3 percent on-year to $2.87 billion.
Investment from Japan also jumped 18.3 percent on-year to $820 million over the six-month period.
On the other hand, new FDI commitments from European Union countries plunged 47.3 percent on-year to $2.22 billion.
By industry, new FDI pledges in the country's manufacturing sector retreated 0.5 percent on-year to $2.84 billion, and fresh FDI pledges to the country's service sector declined 8.1 percent to $6.68 billion.
The ministry said the FDI will likely make a slight turnaround during the remainder of 2017 on the back of a recovery in the world economy. But there are some downside risks such as political and economic uncertainties like an additional U.S. rate hike and the British exit from the European Union.
Source: Yonhap News Agency