Foreign direct investment (FDI) pledges in Korea in the first half of 2013 rose 12.5 percent year on year to reach $8.0 billion. The inflow of foreign capital into Korea maintained a solid pace of growth despite unfavorable economic conditions including a slower domestic economic recovery, a weaker Japanese yen and rising geopolitical risks.
While investment in Korea from the United States and the European Union exceeded $2.0 billion in the first six months of 2013, FDI inflow from Japan declined as its total overseas investment shrank.
The first quarter of 2013 saw FDI in the service sector rise 52.6 percent year on year. However, investment in the manufacturing sector declined 27.2 percent in the same period. Although greenfield investments fell 9.1 percent from a year earlier, FDI through mergers and acquisitions gained 68.4 percent.