The Seoul Metropolitan Government posted an aggregate amount of foreign direct investment into the city reported to the authorities totaling $2.486 billion US in this year’s third quarter, which was up 67% year on year.
The city’s government analyzed that, despite global economic slowdown, the investment figure expanded due to the constant expansion of investments in the “service industry,” which accounts for more than 90% of all the investments that the city’s government has attracted.
The feat is also attributed to Seoul’s shift into an investment-friendly city, which has been made possible thanks to the city’s efforts to improve its global business environment.
FDI growth rates, by industry, suggest that investment in the service sector posted $2.273 billion US, which was up 70.6% year on year from $1.332 billion US, which was recorded in the same period last year.
FDI in the manufacturing sector gained 36.8% increasing to $212 million US from $155 million US in the same period of last year. Notably, investments in the chemical engineering, pharmaceutical, and other manufacturing sectors posted higher growth rates.
By region, the Americas recorded $526 million US, which was up 141.3% year on year, while Europe posted $952 million US (95.5%), and Asia $939 million US (20.5%), as the figures for all three regions added.
Meanwhile, when compared with investments in this year’s first half, investments from Asia and Europe made notable gains following the massive earthquake in Japan, posting $355 million US and $215 million US, respectively.
By investment type, additional investments by existing investors and new investments both posted more than 90% growth, while long-term loans declined over 60%, which reveals a clear change in the types of investment.
In order to maintain the growing trend of additional investments and the amount of investment per case by foreign invested firms, as revealed in the analysis, the Seoul Metropolitan Government plans to step up its efforts to further improve the investment environment for foreign invested firms.
The city’s government also plans to redouble its efforts in public relations and marketing in order to proactively cope with the global economic slump and to help create jobs through the expansion of investments.