Seoul: South Korea's overseas direct investment saw a near 9 percent drop in the first quarter compared to the previous year, as reported by the finance ministry on Friday. The ministry suggested that overseas investments might be stabilizing to pre-COVID-19 pandemic levels.

According to Yonhap News Agency, data from the Ministry of Economy and Finance indicated that South Korean companies invested US$15.13 billion overseas from January to March, marking an 8.9 percent decrease from the same period in the prior year. The ministry attributed this decline to the diminishing base effect after a surge in outbound investments during the 2021-2022 period, as investment levels are gradually normalizing to pre-pandemic figures.

Investment trends varied by sector. Overseas financial and insurance industry investments increased by 23.4 percent year-on-year to $7.74 billion in the first quarter. The mining sector also experienced a significant rise, with investments jumping 55.1 percent to $1.05 billion. Conversely, foreign manufacturing investments fell by 16.9 percent to $3.56 billion, and investments in overseas real estate markets dropped by 57.1 percent to $1.09 billion, according to the ministry.

Regionally, North America captured the largest portion of South Korea's overseas investment at $5.82 billion, followed by Europe with $3.38 billion and Asia with $3.03 billion. Compared to the previous year, investments in North America and Europe both fell by 18.5 percent, while investment in Asia saw a 26.4 percent increase.

The ministry highlighted that the global trade environment is undergoing rapid changes, noting the United States' policy to increase tariffs on trade partners and maintain high interest rates amid a slowing global economy. Moving forward, the South Korean government intends to closely monitor global economic trends and enhance communication and cooperation with major investment destination countries to support local firms in maintaining stable operations abroad.