ID :
21154
Thu, 09/25/2008 - 17:09
Auther :
Shortlink :
http://m.oananews.org//node/21154
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Foreign investment into S. Korea falls for 3rd straight year in 2007: report By Lee Joon-seung
SEOUL, Sept. 25 (Yonhap) -- Foreign direct investment (FDI) flowing into South Korea fell for the third straight year in 2007 due to a slowdown in the domestic economy and a lack of attractive acquisition prospects, a government report said Thursday.
The report by the Ministry of Knowledge Economy, based on data released by the
Geneva-based U.N. Conference on Trade and Development (UNCTAD), showed that South
Korea received FDI totaling US$2.63 billion last year, a drop of 46.1 percent
from a year ago.
"The sluggish economy, inadequate mergers and acquisition opportunities and a
rise in international crude oil prices all dampened foreign investment last
year," a government expert said.
He added that UNCTAD's World Investment Report 2008 revealed that the sharp drop
in actual investment caused the country's FDI ranking to slide 13 notches, from
47th place to 60th, among 141 countries.
The latest findings also said the aggregate amount of FDI that South Korea has
obtained so far was $119.6 billion, or 12.3 percent of the country's gross
domestic product, compared with the worldwide average of 27.9 percent.
South Korea also fell to 130th place from 126th the year before on the FDI
performance index, which is the net sum of all funds flowing into a country
during a one-year period, subtracted by funds sent abroad after liquidations of
assets and selling stocks.
Because the performance index reflects gross domestic product (GDP), big
economies are at a disadvantage.
The United States, Japan and Germany all received low rankings in this field,
while Japan came in 135th and Hong Kong came in first place.
The drop in FDI received by South Korea, however, did not affect its FDI
potential index, which remained unchanged from the year before at 19th place.
The U.S. ranked first on the list, followed by Singapore in sixth and Germany in
24th.
The index, which measures overall business environments and economic
infrastructures, is used as a reference by prospective investors.
The ministry, meanwhile, said South Korea ranked 48th in terms of outward FDI,
with Samsung Electronics Co. and Hyundai Motor Co. making the top 100 in terms of
overseas assets held by non-financial multinationals.
Samsung's ranking jumped 25 notches from 2006, while Hyundai made the top 100 for
the first time.
The report by the Ministry of Knowledge Economy, based on data released by the
Geneva-based U.N. Conference on Trade and Development (UNCTAD), showed that South
Korea received FDI totaling US$2.63 billion last year, a drop of 46.1 percent
from a year ago.
"The sluggish economy, inadequate mergers and acquisition opportunities and a
rise in international crude oil prices all dampened foreign investment last
year," a government expert said.
He added that UNCTAD's World Investment Report 2008 revealed that the sharp drop
in actual investment caused the country's FDI ranking to slide 13 notches, from
47th place to 60th, among 141 countries.
The latest findings also said the aggregate amount of FDI that South Korea has
obtained so far was $119.6 billion, or 12.3 percent of the country's gross
domestic product, compared with the worldwide average of 27.9 percent.
South Korea also fell to 130th place from 126th the year before on the FDI
performance index, which is the net sum of all funds flowing into a country
during a one-year period, subtracted by funds sent abroad after liquidations of
assets and selling stocks.
Because the performance index reflects gross domestic product (GDP), big
economies are at a disadvantage.
The United States, Japan and Germany all received low rankings in this field,
while Japan came in 135th and Hong Kong came in first place.
The drop in FDI received by South Korea, however, did not affect its FDI
potential index, which remained unchanged from the year before at 19th place.
The U.S. ranked first on the list, followed by Singapore in sixth and Germany in
24th.
The index, which measures overall business environments and economic
infrastructures, is used as a reference by prospective investors.
The ministry, meanwhile, said South Korea ranked 48th in terms of outward FDI,
with Samsung Electronics Co. and Hyundai Motor Co. making the top 100 in terms of
overseas assets held by non-financial multinationals.
Samsung's ranking jumped 25 notches from 2006, while Hyundai made the top 100 for
the first time.
