Illustrative image (Source: Internet)
Seoul (VNA) – The foreign direct investment (FDI) of the Republic of Korea (RoK) hit 35.2 billion USD in 2016, the highest figure ever and also a jump from 23.1 billion USD recorded in 2007, according to a report released on April 24 by the Industrial Bank of Korea (IBK).

The report also said FDI of Asia’ fourth largest economy to Vietnam doubled to 2.27 billion USD in 2016 from 1.15 billion USD in 2013.

Meanwhile, FDI of the RoK poured into the US amounted to 12.9 billion USD last year, growing by 123.6 percent from four years earlier, while that invested in China declined 36.5 percent to 3.3 billion USD over the same period.   

The increase in FDI of the RoK to the world’s largest market came as more local companies opted to expand their presence in the US through mergers and acquisitions (M&As) and set up their branches there to adopt advanced technologies and skills.

Last November, the RoK’s Samsung Electronics Co. took over the US’ Harman International Industries Inc as part of efforts to boost competitiveness.

Earlier this year, Huyndai Motor Co., the top automaker in the country unveiled a five – year plan worth of 3.1 billion USD, while major home appliance maker LG Electronics Inc. will set up a large washing machine producing line in the US.

In contrast, the decline of FDI to China is largely due to the completion of Samsung Electronics’ 7 billion USD chip factory in Xian, while the overall investment to China has experienced a downtrend resulted from a slowing Chinese economy.

According to the IBK, FDI to China is not likely to see a turnaround soon due to diplomatic tension between the two countries over RoK’s deployment of an anti–missile system. –VNA