ID :
39379
Wed, 01/07/2009 - 19:51
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http://m.oananews.org//node/39379
The shortlink copeid
Foreign investment in S. Korea up 11.3 pct in 2008 By Lee Joon-seung
SEOUL, Jan. 7 (Yonhap) -- Foreign investment in South Korea grew 11.3 percent annually in 2008 due to concerted efforts to create a more business friendly environment, a government report said Wednesday.
Total foreign direct investment (FDI) reached US$11.7 billion last year, up from
$10.5 billion in 2007, the Ministry of Knowledge Economy said. It marks the first
time since 2004 that inbound investment grew compared to the year before.
In 2004, FDI surged 97.7 percent on-year to just under $12.8 billion, but numbers
started falling for the following three years.
"Aggressive policy initiatives, including the three-year foreign business
improvement plan announced in May, and concerted efforts by both the central and
regional governments to attract FDI have started to bear fruit," said Moon
Sung-wook, head of the ministry's foreign investment policy division.
He said that while money coming from the United States has decreased as a result
of that country's financial crisis, this was offset by the strong yen which
fueled Japanese corporate investment.
The official added that the noticeable rise in investment last year was the
result of foreign firms taking steps to expand holdings in local financial
institutions and more money being injected into South Korean affiliates of large
multinational conglomerates.
Standard Chartered First Bank Korea Ltd., BNP Paribas and ING Life Insurance all
increased investment in the financial sector with companies like IBM and Bosch
increasing their stakes in local affiliates and joint ventures.
For 2009, the ministry in charge of country's industry, trade and energy policies
said the government aims to attract $12.5 billion in FDI, but conceded that the
country will be hard pressed match last year's total.
It said estimates by the World Association of Investment Promotion Agencies
pointed towards 12-15 percent decrease in FDI across the board in the new year as
the economic crunch takes its toll, with sluggish growth among Organization for
Economic Cooperation and Development members further sapping investments.
The ministry, however, said that the weak Korean won and measures to fuel mergers
and acquisition deals in the financial market could help a inflow of FDI into the
country.
yonngong@yna.co.kr
Total foreign direct investment (FDI) reached US$11.7 billion last year, up from
$10.5 billion in 2007, the Ministry of Knowledge Economy said. It marks the first
time since 2004 that inbound investment grew compared to the year before.
In 2004, FDI surged 97.7 percent on-year to just under $12.8 billion, but numbers
started falling for the following three years.
"Aggressive policy initiatives, including the three-year foreign business
improvement plan announced in May, and concerted efforts by both the central and
regional governments to attract FDI have started to bear fruit," said Moon
Sung-wook, head of the ministry's foreign investment policy division.
He said that while money coming from the United States has decreased as a result
of that country's financial crisis, this was offset by the strong yen which
fueled Japanese corporate investment.
The official added that the noticeable rise in investment last year was the
result of foreign firms taking steps to expand holdings in local financial
institutions and more money being injected into South Korean affiliates of large
multinational conglomerates.
Standard Chartered First Bank Korea Ltd., BNP Paribas and ING Life Insurance all
increased investment in the financial sector with companies like IBM and Bosch
increasing their stakes in local affiliates and joint ventures.
For 2009, the ministry in charge of country's industry, trade and energy policies
said the government aims to attract $12.5 billion in FDI, but conceded that the
country will be hard pressed match last year's total.
It said estimates by the World Association of Investment Promotion Agencies
pointed towards 12-15 percent decrease in FDI across the board in the new year as
the economic crunch takes its toll, with sluggish growth among Organization for
Economic Cooperation and Development members further sapping investments.
The ministry, however, said that the weak Korean won and measures to fuel mergers
and acquisition deals in the financial market could help a inflow of FDI into the
country.
yonngong@yna.co.kr
