Seoul:Foreign direct investment (FDI) notifications in South Korea increased by 10.8 percent in the third quarter compared to the previous year, driven by a robust global demand for Korean semiconductors and AI infrastructure equipment, according to government data.

According to Yonhap News Agency, FDI notifications totaled US$22.9 billion from July to September, while the actual FDI arrivals surged by 30.6 percent to $14.87 billion, as reported by the Ministry of Trade, Industry and Resources.

The Ministry noted that South Korea's strong economic fundamentals have played a role in attracting foreign direct investment, despite uncertainties from ongoing Middle East tensions.

A significant portion of FDI notifications, specifically 80 percent or $18.52 billion, was allocated for building or expanding manufacturing facilities, with the rest directed towards mergers and acquisitions.

FDI notifications from the United States rose significantly by 35.1 percent, reaching $6.69 billion in the third quarter. Conversely, FDI from the European Union, Japan, and China declined by 3.9 percent, 47.9 percent, and 39.7 percent, respectively, amounting to $2.41 billion, $1.88 billion, and $1.74 billion.

The South Korean government aims to attract more foreign investment in the semiconductor industry, physical AI, and AI data centers, sectors it considers as key growth engines for the nation's economy.