2017 Foreign Direct Investment
Korean FDI Rises to a Record High in 2017
Korean foreign direct investment (FDI) in 2017 rose to a record high of US $43.70 billion, up 11.8 percent from US $39.10 billion in the previous year.
Korean FDI, 2017
(US$ billions, %)
|
2013
|
2014
|
2015
|
2016
|
2017
|
Amount invested
(y-o-y)
|
30.78
(4.9)
|
28.49
(-7.4)
|
30.29
(6.3)
|
39.10
(29.1)
|
43.70
(11.8)
|
Amount Reported
(y-o-y)
|
36.33
(-10.6)
|
35.91
(-1.2)
|
40.67
(13.3)
|
49.62
(22.0)
|
49.43
(-0.4)
|
By industry, FDI in finance & insurance (up 47.5%) and wholesale & retail (up 64.9%) surged to a record high, while FDI in manufacturing declined (down 3.4%). FDI in real estate & renting also fell (down 43.3%) after rising steadily since 2013.
FDI by Industry, 2017
(US$ billions, %, y-o-y)
|
2016
|
2017
|
Change
|
Finance & insurance
|
8.61
|
12.70
|
47.5
|
Wholesale & retail
|
5.80
|
9.56
|
64.9
|
Manufacturing
|
8.12
|
7.84
|
-3.4
|
Real estate & renting
|
6.62
|
3.76
|
-43.3
|
Publishing & communications
|
1.34
|
2.31
|
72.3
|
By region, FDI rose in North America (up 6.6%), Asia (up 11.4%), Latin America (up 15.8%) and Europe (up 55.6%), but fell in the Middle East (down 40.1%) as construction investment declined (down 55.6%) in the region.[1]
FDI by Region, 2017
(US$ billions, %, y-o-y)
|
2016
|
2017
|
Change
|
North America
|
14.80
|
15.77
|
6.6
|
Asia
|
11.02
|
12.28
|
11.4
|
Latin America
|
6.05
|
7.00
|
15.8
|
Europe
|
4.40
|
6.85
|
55.6
|
Middle East
|
1.09
|
0.65
|
-40.1
|
By country, FDI increased in the US (up 12.8%), Cayman Islands (up 11.6%) and Hong Kong (up 90.2%),[2] but dropped in China (down 11.9%) and Vietnam (down 17.5%).[3]
FDI by Country, 2017
(US$ billions, %, y-o-y)
|
2016
|
2017
|
Change
|
US
|
13.56
|
15.29
|
12.8
|
Cayman Islands
|
4.46
|
4.98
|
11.6
|
Hong Kong
|
1.56
|
2.97
|
90.2
|
China
|
3.37
|
2.97
|
-11.9
|
Vietnam
|
2.37
|
1.95
|
-17.5
|
By type, greenfield investment, such as establishment of a foreign subsidiary, fell 2.1 percent, but mergers & acquisitions increased 33.6 percent.
FDI by Type, 2017
(US$ billions, %, y-o-y)
|
2016
|
2017
|
Change
|
Greenfield investment
|
23.41
|
22.91
|
-2.1
|
M & A
|
15.37
|
20.53
|
33.6
|
Foreign Direct Investment, Q4 2017
Korean FDI in the fourth quarter of 2017 declined 22.3 percent year-on-year to US $10.14 billion from US $13.05 billion in the same quarter of the previous year.
Korean FDI, Q4 2017
(US$ billions, %)
|
2016
|
2017
|
Change
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
y-o-y
|
q-o-q
|
Amount Invested
|
8.30
|
9.03
|
8.72
|
13.05
|
13.40
|
10.30
|
9.86
|
10.14
|
-22.3
|
2.9
|
By industry, FDI rose in finance & insurance (up 37.2%), manufacturing (up 30.6%) and publishing & communications (up 12.7%), but fell in real estate & renting (down 34.0%) and wholesale & retail (down 83.9%).
FDI by Industry, Q4 2017
(US$ billions, %, y-o-y)
|
Q4 2016
|
Q4 2017
|
Change
|
Finance & insurance
|
2.73
|
3.74
|
37.2
|
Manufacturing
|
2.30
|
3.01
|
30.6
|
Publishing & communications
|
0.25
|
0.28
|
12.7
|
Real estate & renting
|
1.36
|
0.90
|
-34.0
|
Wholesale & retail
|
3.74
|
0.60
|
-83.9
|
By region, FDI increased in Asia (up 10.4%) and Europe (up 96.9%),[4] but fell in North America (down 60.7%).[5]
FDI by Region, Q4 2017
(US$ billions, %, y-o-y)
|
Q4 2016
|
Q4 2017
|
Change
|
Asia
|
3.32
|
3.66
|
10.4
|
Europe
|
0.77
|
1.51
|
96.9
|
North America
|
6.08
|
2.39
|
-60.7
|
Latin America
|
1.97
|
2.02
|
2.5
|
By country, FDI rose in Hong Kong (up 32.4%),[6] but fell in the US (down 60.1%), Cayman Islands (down 19.2%) and Vietnam (down 1.1%).[7]
FDI by Country, Q4 2017
(US$ billions, %, y-o-y)
|
Q4 2016
|
Q4 2017
|
Change
|
Hong Kong
|
0.49
|
0.65
|
32.4
|
US
|
5.44
|
2.17
|
-60.1
|
Cayman Islands
|
1.67
|
1.35
|
-19.2
|
Vietnam
|
0.55
|
0.54
|
-1.1
|
By type, greenfield investment increased 30.7 percent, while mergers & acquisitions fell 57.9 percent.
FDI by Type, Q4 2017
(US$ billions, %, y-o-y)
|
Q4 2016
|
Q4 2017
|
Change
|
Greenfield investment
|
5.22
|
6.82
|
30.7
|
M & A
|
7.78
|
3.28
|
-57.9
|
Korean FDI is expected to grow due to increasing corporate investment in advanced technologies and newly developing markets. FDI is also expected to diversify in terms of sector and region.