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Foreign direct investment in S. Korea falls in Q1

0 Comment(s)Print E-mail Xinhua, April 3, 2025
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SEOUL, April 3 (Xinhua) -- Foreign direct investment (FDI) in South Korea fell in the first quarter on rising uncertainty following the launch of the new U.S. administration, government data showed Thursday.

The reported FDI stood at 6.41 billion U.S. dollars in the January-March quarter, down 9.2 percent compared to the same period of last year, according to the Ministry of Trade, Industry and Energy.

The reduction came on the back of growing uncertainty over global trade, caused by U.S. President Donald Trump's inauguration.

The FDI in the domestic manufacturing industry tumbled 24.5 percent to 2.33 billion U.S. dollars in the cited quarter.

Foreign investment in the electric and electronic sector dropped 63.6 percent to 529 million dollars, and investment in the machinery equipment and medical precision instrument segment plunged 67.7 percent to 174 million dollars.

The FDI in the local service industry declined 7.4 percent to 3.56 billion dollars in the first three months of this year from a year earlier.

Investment in the finance and insurance sector shrank 1.2 percent, while those in the real estate and the information and communication sectors retreated in double digits.

Direct investment from the United States, the European Union and Japan gained to 830 million dollars, 1.49 billion dollars and 1.23 billion dollars each, but investment from other countries reduced in the first quarter.

Greenfield investment, which involves factory construction and employment, increased 20.7 percent to 4.66 billion dollars, but the merger and acquisition investment slumped 45.4 percent to 1.74 billion dollars. Enditem

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