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  • Foreign Direct Investment in Seoul Gains 69% Year on Year in 1st Quarter

  • Integrated News SMG 2905

    The Seoul Metropolitan Government saw foreign direct investment into the City rise by 69 percent year on year to reach $835 million in the first quarter of 2011.

    A tally of growth rates by industrial sector suggests that the service sector saw an FDI increase of 67.4 percent year on year, rising from $466 million to $780 million, while the manufacturing sector saw an FDI gain of 96.4 percent year on year, rising from $28 million to $55 million.

    FDI in the finance and insurance sector, which is the Seoul Metropolitan Government’s primary target area for FDI inducement, accounted for 31.8 percent of the overall FDI volume, up by 15.7 percent from the same period of last year.

    The business service sector, including consulting and accounting, which is the foundation for advancing the industrial structure, saw FDI rise by 53.6 percent, thus showing overall growth.

    By region, the largest amount of FDI into Seoul came from Europe at 35 percent, followed by Asia at 33 percent, and the Americas at 31 percent.

    By amount, FDI from the Americas amounted to $259 million (up 38.2 percent year on year), while FDI from Asia and Europe reached $274 million (38.4 percent) and $294 million (18.6 percent), respectively, as the amount of investment from all three regions showed a significant increase.

    Meanwhile, by investment type, additional investment by existing foreign invested companies accounted for 58 percent, new investments 41 percent, and long-term investment 1 percent.

    In order to attain this year’s FDI target of $4.5 billion, the Seoul Metropolitan Government plans to construct a network with the Korea Trade-Investment Promotion Agency, consulting and law firms from May, and to proactively seek to discover potential investors in Europe, the Americas and emerging markets in Asia.