In the third quarter of this year, Korea's outward foreign direct investment rose by nearly 10% from the third quarter of last year. It increased for the first time in five quarters.
According to the Ministry of Economy and Finance on the 23rd, outward foreign direct investment in the third quarter of this year was $16.06 billion. That was up 9.3% from the same period a year earlier. Outward foreign direct investment includes cases where individuals or corporations domiciled in Korea invest 10% of the total outstanding shares of a foreign corporation, or cases where they invest less than 10% but sign overseas construction contracts, among others.
Outward foreign direct investment had fallen year over year for four straight quarters from the third quarter of last year to the second quarter of this year. In particular, it dropped 10.9% in the fourth quarter of last year, marking a steep decline. The trend reversed in the third quarter of this year, largely due to increased investment in finance and insurance and in manufacturing. Over the past year, outward foreign direct investment in finance and insurance rose from $6.3 billion to $7.97 billion, and in manufacturing from $3.99 billion to $4.21 billion.
By country, investment in the United States increased 55% ($3.85 billion → $5.97 billion). The Cayman Islands also rose 3.6% ($1.72 billion → $1.78 billion), and Singapore increased 135.1% ($490 million → $1.16 billion).
The Ministry of Economy and Finance (MOEF) said, "The increase in third-quarter outward foreign direct investment appears to reflect changes in the international financial market trend following the U.S. interest rate cuts and the stabilization of the dollar's value," adding, "It also appears that the resolution of uncertainty in the investment environment due to the conclusion of tariff negotiations between the United States and major countries had an impact."