Busan City Records $560 Million FDI... 85.4% Increase from Previous Year

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Last year, Busan City's foreign direct investment (FDI) reached $560 million, the largest amount reported in the past five years.

In 2021, South Korea's total FDI reached a record high of $29.51 billion, increasing by 42.3% based on reported amounts and 57.5% based on actual arrivals compared to 2020.

Busan City's FDI increased by 85.4% based on reported amounts and 16.6% based on actual arrivals compared to 2020.

Looking at Busan's FDI over the past five years, the growth rate compared to the five-year average based on reported amounts is 62.9%, ranking first among non-capital regions, and the actual arrival growth rate compared to the five-year average is 86.7%, ranking second among non-capital regions.

The Busan City officials stated, "Despite adverse factors such as the prolonged COVID-19 pandemic, the increase in Busan's FDI can be seen as a result of the rise in Busan's city brand value through activities such as the bid for the 2030 Busan World Expo."

Throughout last year, Busan attracted investment funds totaling 2.1685 trillion KRW from 23 domestic and international companies across various industries including global logistics giants such as Coupang, BGF Retail, and LX International, as well as manufacturing, knowledge services, and medical bio sectors, creating 8,362 jobs.

Examining the types of FDI in Busan in detail, greenfield investments, which can generate local job creation effects through new or expanded facilities, accounted for $355 million, representing 63% of the total FDI.

By industry, manufacturing recorded $220 million, a 156% increase compared to 2020, centered on shipbuilding, metals, and machinery equipment sectors, while services, including wholesale and retail distribution, research and development, and science and technology, increased by 56.4% compared to 2020, totaling $336 million.

By country, the shares were Singapore 19%, the United States 14%, China 13%, and Japan 11%, in that order.

Singapore invested mainly in research and development and science and technology; the United States in wholesale and retail, pharmaceuticals; China in wholesale and retail; and Japan focused on machinery equipment and medical precision sectors.

Lee Jun-seung, Director of Busan City's Digital Economy Innovation Office, said, "We will promote our city's excellent investment environment using major overseas media and investment institutions, and actively attract promising companies with future potential through online and offline investment briefings. We will also continue to support the successful entry and early settlement of foreign companies in Busan."

This content was produced with the assistance of AI translation services.