Korea’s outbound foreign direct investment (FDI) in the third quarter (July to September) 2023 amounted to $14.62 billion, falling by 20.4 percent compared with a year ago, which hit $18.37 billion. It also dropped by 6.6% from the previous quarter, showing two consecutive quarters of FDI drop.

Korea’s outbound FDI, Q3 2023

(US $billion, %, y-o-y)

By industry, Korea’s outbound FDI decreased in most of the sectors such as finance and insurance ($6.66 billion, down 21.3% y-o-y), real estate and renting ($0.92 billion, down 36.9% y-o-y), professional science and technology ($0.43 billion, down 42.5% y-o-y), and mining ($0.4 billion, down 14.9%) while its investment increased in manufacturing ($4.86 billion, up 11.8% y-o-y).

By region, Korea’s outbound FDI declined in the entire regions including North America ($7.64 billion, down 0.8% y-o-y), Europe ($2.81 billion, down 20.9% y-o-y), Asia ($2.11 billion, down 43.8% y-o-y) and Latin America ($1.79 billion, down 37.9% y-o-y). By country, the top destinations for the FDI were the U.S. ($6.68 billion, down 10.3%), followed by the Cayman Islands ($1.38 billion, down 47.4%), Luxemburg ($1.26 billion, up 44.4%), Canada ($0.96 billion, up 272.9%) and Vietnam ($0.58 billion, up 8.3%).

Korea’s FDI in the third quarter of 2023 ($14.62 billion) continued to slow following the previous quarter, indicating that interest hikes in major countries and concerns over economic recession in Europe and China act as constraints on investment. In addition, Korea continues to make investment toward the U.S. and the ASEAN region, aiming to securing advanced technologies and enhancing supply chains while its investment in China appears to be shrinking.

Please refer to the attached files.