SEOUL, July 15 (Xinhua) -- Foreign direct investment (FDI) in South Korea logged a double-digit fall in the first half of this year due to uncertainties at home and abroad, government data showed Friday.

The reported FDI declined 15.6 percent over the year to 11.09 billion U.S. dollars for the first six months of this year, according to the Ministry of Trade, Industry and Energy.

The double-digit reduction was caused by geopolitical risks in Europe and faster-than-expected interest rate hikes.

The reported FDI in the services sector tumbled 26.3 percent to 7.64 billion dollars in the first half of the year, owing to weaker demand from Europe.

Foreign investment in the domestic manufacturing industry surged 53.3 percent to 3.1 billion dollars.

Direct investment from the United States and Japan climbed in double figures to 2.95 billion dollars and 890 million dollars each, but those from the European Union (EU) and China diminished in double digits to 1.74 billion dollars and 2.45 billion dollars respectively.

Greenfield investment, which involves factory construction and employment, added 9.1 percent to 8.26 billion dollars, but the merger and acquisition (M&A) investment dropped 49.2 percent to 2.83 billion dollars. Enditem

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