Korea's overseas direct investment aggregates last year were counted as having increased by nearly 9% from a year earlier. Backed by an interest rate cut trend and strong global stock markets, it posted the highest growth rate in four years since 2021.
Overseas direct investment is a blanket term for overseas business activities such as domestic individuals and corporations acquiring securities to participate in the management of foreign corporations or establishing, expanding, and operating foreign offices.
According to 2025 overseas direct investment, which the Ministry of Finance and Economy released on the 27th, last year's overseas direct investment amounted to $71.88 billion, up 8.7% from a year earlier ($66.13 billion).
On an annual basis, overseas direct investment hit an all-time high in 2022 ($83.48 billion, +8.4%), then declined in 2023 (-20.9%) and was flat in 2024 (+0.1%) before turning to growth. In terms of growth rate, it was the highest in four years since 2021 (+32.4%).
By industry, investment in finance and insurance ($37.89 billion) surged 32.7% from the previous year, accounting for the largest share. Manufacturing ($17.11 billion) rose 4.1%, following behind. Finance and insurance and manufacturing account for about 77% of total investment, and the simultaneous rise in these sectors led the overall investment increase. By contrast, investment in real estate ($3 billion, -46.9%) and mining ($2.55 billion, -41.6%) contracted.
By region, North America ($27.81 billion), Asia ($16.06 billion), Europe ($14.99 billion), and Central and South America ($10.69 billion) were the order. In particular, investment in Asia increased sharply by 23.9% from the previous year, expanding Asia's share of total investment from 18% to 22.3%.
By country, the United States ($25.27 billion), the Cayman Islands ($8.44 billion), Luxembourg ($6.34 billion), and Singapore ($3.82 billion) were the order. Notably, investment in the United States rose 12.9%, driven by an increase in finance and insurance investment for the first time since 2022.
The Ministry of Finance and Economy analyzed that it was "the result of a combination of changes in the flow of international financial markets, such as an interest rate cut trend and strong global stock markets, and an expansion of corporations' investment to respond to changes in the global situation."
Meanwhile, net investment, which subtracts recovery amounts such as equity sales and liquidations from total investment, was $41.69 billion, down 12.9% from the previous year ($47.85 billion).