'Q2 Record' Overseas Direct Investment Amounts to $19.26 Billion... Decreased from Q1 Due to Interest Rate Hikes

[Asia Economy Sejong=Reporter Kim Hyewon] South Korea's overseas direct investment (ODI) in the second quarter of this year recorded the highest amount ever for a second quarter. However, it decreased by nearly 26% compared to the first quarter due to the impact of interest rate hikes and other factors.

According to the "2022 Q2 Overseas Direct Investment Trends" announced by the Ministry of Economy and Finance on the 16th, the ODI amount in the second quarter (April to June) was $19.26 billion, a 13.1% increase compared to the same period last year. This is the highest amount ever recorded for a second quarter since related statistics began in 1968.

During the same period, net investment amounted to $15.58 billion, up 24.2% from the same period last year.

Overseas direct investment refers to overseas business activities such as domestic corporations or individuals acquiring securities to participate in the management of foreign corporations or establishing and operating foreign business offices.

The Ministry of Economy and Finance explained, "Although the ODI amount in the second quarter increased compared to the same period last year due to the base effect, it decreased by 25.7% compared to the first quarter due to uncertainties in domestic and foreign investment conditions such as interest rate hikes."

By industry, the investment scale was led by financial and insurance services ($7.33 billion, up 22.1%), manufacturing ($6.13 billion, up 75.4%), and real estate ($1.32 billion, up 5.2%). On the other hand, wholesale and retail trade ($1.17 billion) and information and communication ($1.05 billion) decreased by 16.7% and 17.8%, respectively.

By country, the largest direct investment was in the United States ($7 billion), followed by the Cayman Islands ($2.7 billion), Luxembourg ($1.4 billion), China ($1.22 billion), and Canada ($930 million). Investment in China and Canada decreased by 23.5% and 16.7%, respectively.

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