emirates7 - South Korea's overseas direct investment declined for the second consecutive year in 2024 due to persistent geopolitical uncertainties. However, the rate of decline was slower compared to the previous year, the Ministry of Economy and Finance reported on Friday.
According to ministry data, foreign investments by South Korean companies totaled $63.95 billion last year, marking a 1.8 percent year-on-year drop. This decline was significantly milder than the 22.2 percent plunge recorded in the previous year, which had been the first annual contraction since 2020.
Yonhap News Agency cited the ministry as attributing the slower decline to increased investment in alternative assets by pension funds in advanced economies and ongoing corporate investments in high-tech industries, such as semiconductors and batteries.
Sector-wise, while most industries saw growth in offshore investments, the manufacturing sector experienced a sharp 21.6 percent decline, which offset gains in other areas.
The United States remained the top destination for South Korean overseas investments, receiving $25.88 billion in 2024, followed by Europe, which attracted $13.87 billion. Notably, Europe's share of total investments increased by 4.7 percentage points, rising from 17 percent to 21.7 percent over the year.
The finance ministry emphasized that the government will continue collaborating with key investment destinations to support South Korean businesses, ensuring stable operations amid growing global protectionism and supply chain restructuring.
According to ministry data, foreign investments by South Korean companies totaled $63.95 billion last year, marking a 1.8 percent year-on-year drop. This decline was significantly milder than the 22.2 percent plunge recorded in the previous year, which had been the first annual contraction since 2020.
Yonhap News Agency cited the ministry as attributing the slower decline to increased investment in alternative assets by pension funds in advanced economies and ongoing corporate investments in high-tech industries, such as semiconductors and batteries.
Sector-wise, while most industries saw growth in offshore investments, the manufacturing sector experienced a sharp 21.6 percent decline, which offset gains in other areas.
The United States remained the top destination for South Korean overseas investments, receiving $25.88 billion in 2024, followed by Europe, which attracted $13.87 billion. Notably, Europe's share of total investments increased by 4.7 percentage points, rising from 17 percent to 21.7 percent over the year.
The finance ministry emphasized that the government will continue collaborating with key investment destinations to support South Korean businesses, ensuring stable operations amid growing global protectionism and supply chain restructuring.