Han Deok-su: "Foreign Direct Investment of 15.6 Billion USD by the 20th of This Month, Up 66% YoY"

"Current Account Surplus Expected at $15 Billion to $20 Billion This Year"
Net External Financial Assets at About $770 Billion in Q1

Prime Minister Han Duck-soo [Image source=Yonhap News]

Prime Minister Han Duck-soo revealed that foreign direct investment (FDI) from January to the 20th of this month increased by 66% compared to the same period last year, reaching $15.6 billion. He projected a current account surplus of $15 billion to $20 billion for the year and stated that net external financial assets amounted to $770 billion in the first quarter.

On the 21st, Prime Minister Han met with reporters at the Government Complex Sejong and directly referred to the relevant statistics, saying, “FDI is increasing compared to the same period last year.”

He said, “Many companies are relocating due to the global supply chain restructuring, so we believe this is the time to attract foreign corporate investment,” adding, “Last year, we adjusted the personal income tax rate for CEOs and foreigners in foreign-invested companies to a complete single tax rate of 19%, applied for 20 years.”

Prime Minister Han continued, “We made it possible to choose between comprehensive income tax and this single tax rate, which is not as favorable as Singapore or Hong Kong but competitive enough,” and explained, “Efforts to strictly enforce labor market laws and establish the rule of law have positively contributed to our external credibility.”

He also stated, “Although the trade balance is facing difficulties, the current account, which reflects foreign currency conditions, has improved since the second half of the year,” and “We expect a surplus of $15 billion to $20 billion this year as well.”

Additionally, he mentioned that South Korea’s net external financial assets (external financial assets minus external financial liabilities) were about $770 billion in the first quarter, and foreign exchange reserves stood at $420 billion, ranking ninth in the world.

Regarding the domestic economic growth forecast, he said, “International organizations have lowered their forecasts from earlier projections due to sluggish exports, but overall balance indicators look better compared to the U.S. and others,” and “(International organizations) forecast our economic growth rate at 1.5% this year and 2.4% next year.” He expressed confidence, saying, “Next year, it will clearly show that we are doing well.”

However, Prime Minister Han cautioned, “It is difficult to say that economic management has completely turned in a positive direction based on these indicators,” and added, “This is by no means a situation where we can relax, and we must continue to proceed with vigilance.”

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