Last Year's Overseas Investment Declines for the First Time in 6 Years Due to COVID-19... Down 14.6% Compared to Previous Year
Foreign Direct Investment Amount Plummets Below 60 Billion Dollars
[Sejong=Asia Economy Reporter Son Seon-hee] Overseas direct investment, which had steadily increased every year and surpassed $60 billion for the first time in history in 2019, declined last year for the first time in six years due to the impact of COVID-19. However, overseas investment, which had decreased until the third quarter of last year, rebounded in the fourth quarter due to factors such as vaccine distribution.
According to the Ministry of Economy and Finance on the 15th, the annual overseas direct investment amount last year was $54.91 billion, down 14.6% from the previous year ($64.3 billion). The net investment amount, which excludes the recovery amount (equity sales, loan investment recovery, liquidation, etc.) from the total investment amount, was $40.96 billion, also down 19.6% from the previous year ($50.93 billion).
Looking at it by quarter, overseas investment decreased for three consecutive quarters in the first to third quarters of last year due to the impact of COVID-19. This was the first time overseas investment had decreased since the first quarter of 2014. However, in the fourth quarter, when global vaccine distribution began, the scale of investment showed signs of recovery.
By industry, financial and insurance industries recorded $17.53 billion, and manufacturing recorded $12.91 billion, both decreasing by more than 30% compared to the previous year, indicating a significant contraction in overseas investment centered on major investment industries. On the other hand, the information and communication industry recorded $3.64 billion, a significant increase of 294.2% compared to the previous year.
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By country, the United States recorded $14.73 billion, down 4.2% from the previous year, and the Cayman Islands also decreased by 22% to $6.58 billion. China also decreased by 27.9% to $4.19 billion, with the 'three major investment destinations' all experiencing a contraction in investment. On the other hand, due to large-scale investments by public institutions, Canada saw direct investment increase by 147.4% compared to the previous year, reaching $2.94 billion.
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