The size of foreign direct investment (FDI) reported by the Seoul Metropolitan Government was $ 9,558 million (as of December 16th, 2016). This is a 12.1% increase from the record high of $ 8,529 million in 2015, accounting for 44.9% of the national FDI declaration ($ 21.3 billion).
Trends in Foreign Direct Investment in Seoul by Year (based on the reported amount, million USD)
The main reason for the increase of foreign direct investment is attributed to the increase of ‘greenfield investment’, which is the method of securing the company’s own site and establishing factories and business sites for foreign investment from Europe. Greenfield investment is considered to be more effective than M&A type in creating jobs and transferring new technologies and management techniques to the domestic market.
In particular, investment in promising start-ups in Seoul has increased significantly, and greenfield investment, which was only $ 3 billion in 2012, grew to $ 5.5 billion in 2016 (accounting for 57.3% of the total).
By region, investment from Europe was $ 4.3 billion, an increase of 161% over the previous year’s $ 1.65 billion. This is attributable to the continued improvement in investment conditions since the implementation of the Korea – EU FTA in 2011.
In 2017, Seoul will focus on attracting investments that are centered on start-ups related to the fourth industrial revolution. Seoul will also operate industrial sectors and investment attraction methods in a more sophisticated way, including a small target round table and one on one matching investment IR (Investor Relation).
Invest Seoul Website: http://investseoul.com