The Korea Times
By Yoon Ja-young
Staff Reporter
Overseas direct investment by Korean firms and individuals for the first half of this year recorded $14.7 billion, growing 42.8 percent from a year ago. This is in contrast with foreign investors leaving Korea.
According to the Ministry of Strategy and Finance, the growth was mostly due to overseas resources development projects and global management strategies by conglomerates. Rising global oil and other resource prices motivated firms to look for resource development projects abroad, and an increasing number of businesses are choosing to manufacture abroad following globalization and localization plans.
Korea National Oil Corporation, for example, participated in a Gulf of Mexico oil field development project with a $1.2 billion stake. Kia Motors and Kumho Tire meanwhile started facility investment overseas.
Statistics showed that conglomerates led the overseas direct investment expansion, increasing investment by 72.9 percent. Small businesses saw a 17.4 percent growth, and individuals 4.2 percent. Conglomerates took over half of the overseas investment by Korea, followed by small businesses at 35.3 percent.
By industry, direct investment by wholesale, retail and mining industries soared notably. These industries increased investment overseas by around two-fold.
By countries, the United States and Cambodia saw huge expansion of investment from Korea. Investment by Korean firms and individuals in the United States grew 102.7 percent, as Samsung C&T and Korea National Oil Corporation participated in oil field development projects.
Cambodia saw a 127.8 percent investment growth by Koreans, following GS E&C's set up of a corporation there to develop a commercial area in Phnom Penh.
The growing overseas investment by Korean firms and individuals, however, contrasts with dwindling investment in Korea by foreigners. Koreans' outbound direct investment surpassed inbound FDI by $890 million in the first half this year, the first time ever since 1980 when the government started compiling statistics.
According to the Bank of Korea, regulations and investment restriction in the service sector are hampering FDI.
By Yoon Ja-young
Staff Reporter
Overseas direct investment by Korean firms and individuals for the first half of this year recorded $14.7 billion, growing 42.8 percent from a year ago. This is in contrast with foreign investors leaving Korea.
According to the Ministry of Strategy and Finance, the growth was mostly due to overseas resources development projects and global management strategies by conglomerates. Rising global oil and other resource prices motivated firms to look for resource development projects abroad, and an increasing number of businesses are choosing to manufacture abroad following globalization and localization plans.
Korea National Oil Corporation, for example, participated in a Gulf of Mexico oil field development project with a $1.2 billion stake. Kia Motors and Kumho Tire meanwhile started facility investment overseas.
Statistics showed that conglomerates led the overseas direct investment expansion, increasing investment by 72.9 percent. Small businesses saw a 17.4 percent growth, and individuals 4.2 percent. Conglomerates took over half of the overseas investment by Korea, followed by small businesses at 35.3 percent.
By industry, direct investment by wholesale, retail and mining industries soared notably. These industries increased investment overseas by around two-fold.
By countries, the United States and Cambodia saw huge expansion of investment from Korea. Investment by Korean firms and individuals in the United States grew 102.7 percent, as Samsung C&T and Korea National Oil Corporation participated in oil field development projects.
Cambodia saw a 127.8 percent investment growth by Koreans, following GS E&C's set up of a corporation there to develop a commercial area in Phnom Penh.
The growing overseas investment by Korean firms and individuals, however, contrasts with dwindling investment in Korea by foreigners. Koreans' outbound direct investment surpassed inbound FDI by $890 million in the first half this year, the first time ever since 1980 when the government started compiling statistics.
According to the Bank of Korea, regulations and investment restriction in the service sector are hampering FDI.
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