South Korea FDI Notifications Rise 10.8% in July-September Quarter

FDI arrivals also rose sharply, up 30.6 per cent from a year earlier to $14.87 billion in the third quarter, according to the Ministry of Trade, Industry and Resources.

The ministry said South Korea's economic fundamentals helped sustain foreign investment despite uncertainty linked to prolonged tensions in the Middle East.

Investment notifications for establishing or expanding manufacturing facilities accounted for about 80 per cent of the total at $18.52 billion, while the remainder was directed towards mergers and acquisitions.

US investors accounted for $6.69 billion in FDI notifications during the quarter, marking a 35.1 per cent increase from the same period a year earlier.

Investment notifications from the European Union, Japan and China, however, declined during the period. EU investment fell 3.9 per cent to $2.41 billion, while Japanese investment dropped 47.9 per cent to $1.88 billion. Chinese investment declined 39.7 per cent to $1.74 billion.

The South Korean government said it would focus on attracting overseas investment in semiconductors, physical artificial intelligence and AI data centres, which it has identified as key growth areas for the country's economy.

Finance Minister Lee Hyoung-il said the government would work to improve the business environment and support economic growth while addressing structural challenges facing the country.

Speaking at a meeting with representatives of six major business organisations, including Korea Chamber of Commerce and Industry Chairman Chey Tae-won, Lee said South Korea's economy had gained momentum despite difficult global conditions, helped by a recovery in the semiconductor sector.

At the same time, he pointed to challenges including a declining working-age population and weak productivity growth. He also noted persistent disparities across sectors and increasing pressure on households from higher consumer prices.