Foreign direct investment in the first half of the year reached a record high, growing 54.2% from last year thanks to the entry of more foreign investors in domestic cutting-edge industries including semiconductors and secondary batteries. (Yonhap News) 

By Kim Hyelin

Foreign direct investment (FDI) in the first half of the year reached a record high thanks to an increasing number of foreign investors in domestic cutting-edge industries like semiconductors and secondary batteries. 

The Ministry of Trade, Industry and Energy on July 4 said reported FDI was USD 17.09 billion in the period, up 54.2% year on year. 

The figure was USD 1.34 billion or 8.5% more than the previous mark of USD 15.75 billion in the first half of 2018.

FDI that arrived in the country over the same period also rose 6% to USD 7.75 billion.

By industry, FDI in manufacturing skyrocketed 145.9% to USD 7.63 billion and that in services rose 11% to USD 8.4 billion. Within manufacturing, such investment rose the most in electrical and electronics including semiconductors and secondary batteries with 663% and chemical engineering with 464.1%. 

The European Union (EU) led all countries in FDI with USD 4.26 billion, up a hefty 145%. That from the U.S. grew 24% to USD 3.66 billion and that from Greater China, which comprises China, Taiwan, Hong Kong and Macao, rose 33% to USD 3.25 billion.

The U.S. and EU expanded such investment in high-tech manufacturing sectors like chips, secondary batteries and biotechnology and new energy industries including hydrogen and offshore wind power.

By type, greenfield investment, or FDI to build, expand and run plants or business sites, reached USD 12.64 billion, up 53%. That in M&As for securing corporate shares or agreeing to a merger rose 57% to USD 4.45 billion.

FDI refers to investment from foreign entrepreneurs seeking to form lasting economic ties with domestic companies through methods like participation in management and technological partnerships instead of merely operating assets in the country. 

kimhyelin211@korea.kr