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South Korea’s Overseas Direct Investment Hit All-time High in Q2
Exodus from Korea
South Korea’s Overseas Direct Investment Hit All-time High in Q2
  • By Jung Min-hee
  • September 30, 2019, 09:01
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South Korea’s overseas direct investment reached a new high in the second quarter of this year. 

South Korea’s overseas direct investment reached a new high in the second quarter of this year, continuing to increase for the fifth consecutive quarter. In particular, large corporations’ investment in the Chinese semiconductor and electronic equipment sectors soared in the wake of Japan’s semiconductor and display material export restrictions.

The Ministry of Economy and Finance announced on Sept. 27 that South Korea’s overseas direct investment totaled US$15.01 billion in the second quarter, up 13.3 percent from a year ago and up 6.3 percent from the previous quarter. The value is the largest since records began in 1981.

The manufacturing sector accounted for 38.3 percent of the total with a year-on-year increase of 14.3 percent. “Large-scale M&As and investments for facility expansion led the growth,” the ministry explained.

The financial and insurance sector’s overseas direct investment jumped 35.2 percent to US$5.22 billion with asset management firms increasing their fund investment in advanced economies. Real estate, mining, and electricity and gas supply represented 9.2 percent, 5 percent, and 2.7 percent of the total, respectively.

South Korea’s overseas direct investment in the United States rose 14.7 percent from a year ago to US$3.2 billion and that in China soared 123.7 percent to US$2.08 billion. The former was led by an increase in M&A investment for global sales network expansion. South Korea’s overseas direct investment in Asia, North America, Latin America and Europe took up 36.6 percent, 22.9 percent, 18 percent and 17.7 percent of the total, respectively.