Seoul: Foreign direct investment (FDI) of international companies in South Korea reached a record US$7.14 billion in the first quarter, government data showed Friday. The tally marked an 82.9 percent increase from $3.9 billion recorded during the January-March period of last year.

According to Yonhap News Agency, new FDI commitment promises also went up 0.1 percent on-year to $6.41 billion in the January-March period, marking the second-highest figure for the first quarter. The Ministry of Trade, Industry and Resources explained that South Korea is continuing to see growth in FDI commitments despite the subdued global investment environment and unexpected geopolitical conflict in the Middle East, which shows foreign investors' confidence in the country. South Korea received record high FDI pledges of over a combined $36 billion in 2025.

This year's new foreign investment promises were centered on semiconductor, secondary battery, artificial intelligence (AI) data centers, offshore wind power, and other advanced industries. The ministry added that by industry, FDI pledges in the service sector gained 21.5 percent on-year to $4.33 billion through March, driven by robust demand in finance, retail, and communications, while those in the manufacturing sector slumped 47.6 percent to $1.24 billion.

By country, fresh investment pledges from the United States increased 20.9 percent to $1 billion. In contrast, FDI pledges from the European Union decreased 4.1 percent to $1.43 billion, while those from Japan and China tumbled 71.1 percent and 19.4 percent to $350 million and $270 million, respectively.