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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The Ministry of Trade, Industry, and Energy announced on Thursday that foreign direct investment (FDI) in South Korea for the first quarter of 2025 amounted to 64.1 billion USD, a 9.2% decrease compared to the same period last year.
Several factors contributed to the decline in FDI, including the base effect from last year's record high first-quarter FDI, the uncertainty from the Trump administration's second-term tariff policies, and economic uncertainty both domestically and globally. Additionally, the depreciation of the Korean won led to a decrease in the USD value of investments.
However, the Ministry emphasized that despite the decline, the FDI reported in Q1 was the second-highest on record for the first quarter, showing that foreign investors' confidence in Korea's economic fundamentals remains strong. The Ministry added that, given the ongoing global economic uncertainty, it is too early to predict the full-year FDI situation based on just the Q1 figures.
Looking ahead, the Ministry plans to increase foreign investment incentives, enhance the foreign investment environment in line with global standards, and engage in strategic outreach to expand foreign investment throughout the year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
