FDI(FOREIGN DIRECT INVESTMENT) IN THE FIRST HALF OF 2019 REACHES “TURNING POINT” TO ACHIEVE $20 BILLION FOR FIVE CONSECUTIVE YEARS
- THE RECORDED FIGURES OF $98.7 BILLION BY REPORT BASIS AND $56.1 BILLION BY ARRIVAL
- A MARKED INCREASE IN ADVANCED TECHNOLOGIES, NEW INDUSTRIES AND KOREAN WAVE-TYPE INVESTMENTS
- FDI in the first half of 2019 reached $98.7 billion by report basis(YOY comparison ▲37.7%) and $56.1 billion(▲45.2%) by arrival. The results exceeded the 10-year average($84.5 billion/ $52.2 billion) in both report and arrival criteria, and the long-term uptrend is being maintained.
- By quarter, the results of FDI in the second quarter reached $67.0 billion more than doubled, compared to $31.7 billion in the first half, and the momentum of the rebound was created.
- The decline of 2019-first-half FDI, compared with the previous year, was analyzed
due to the base effect and the decrease of global foreign direct investment.
- ❶ (base effect)The actual 2019-first-half record shows a relative decline due to the unparalleled performance($157.5 billion by report basis) in the first half of 2018.
- * The figures close to the statistical outliers was recorded due to some reported large-scale projects such as GM($36 billion).
- ❷ (decline in global FDI) 2018 global FDI has continued to decline since 2015 and reached the lowest level of $1.3 trillion since the financial crisis (according to UNCTAD’s announcement in June, 2019).
- * Trend of By-Year Global FDI
- The trends of foreign direct investment in the first half of the year are as follows.
❶ The continuous investment in essential high-tech materials to secure manufacturing competitiveness.
- - The continuous investment in the field of high-tech materials such as nano, polymer, and semiconductor was made for the advancement of the manufacturing industries. And the investment was also made to build the domestic production bases by combining the strengths(korea’s process management + foreign technologies) of domestic and foreign companies.
❷ The high interest in Korea’s bio industry with the growth potential.
- - The strengths of investment in Korea’s biotechnology industry, such as superior R&D personnel, medical system and Korean government’s willingness to foster industries, are highly valued.
- - A variety of business models that combine IT, healthcare, and investment in the related domestic start-up companies have been on increase.
❸ The growth of cultural services and high-end consumer goods in connection with the Korean Wave(K-move).
- - The foreign investment has been diversified by the projects that utilize Korean culture and images such as K-pop, K-beauty, and etc. in performance, arts and e-sports.
- - The domestic investment of well-known foreign brands in the field of beauty, cosmetics, and etc. has increased and the domestic beauty start-ups that attracted foreign investment are also growing.
- - The FDI cases in OZO, gold chain area, combining advanced shipping logistics service with high-end consumer goods are on increase.
❹ More active investment in IT-enabled services such as mobile platform.
- - As the 5G is commercialized, more investment has been made in the start-ups which provide advanced services such as pet care, real estate, shared kitchen, e-commerce ,and etc. in the mobile environment.
- - One of the characteristics, that have been showing a rapid increase in recent years, is to invest in mobile-and web platform-based contents creation and distribution.
※ More information can be found at http://www.motie.go.kr
Sources and Inquiry: Dept. of Investment Promotion, MOTIE
TEL. 044-203-4086