Eighth Consecutive Monthly Increase of FDI

Monthly FDI (Foreign Direct Investment) has increased eight months in a row compared the same month last year, but its growth rate dropped significantly.

According to ‘FDI Trend in June’ released on July 5 by Ministry of Commerce, Industry and Energy (MCIE), monthly FDI increased 7.9% from $1,226 million in June, 2001 to $1,323 million.

FDI has risen eight months in a row since November. But the increase rate fell deeply, compared with 56.6% and 28.3% in April and May respectively.

FDI in the first half of this year amounts to $4,838 million, a 29.4% increase over the same period of last year.

What is noticeable is that investment from the U.S. soared 263% from $764 million in the first quarter of last year to $2,773 million. As a result, the U.S. accounts for 57.3% of total FDI.

On the other hand, investment from the European Union fell 43.5% compared with the first quarter of last year. Its share dropped from last year’s 45.7% to 20%. And Japan’s share is also reduced from 10.6% to 7.4%.

By industry, in the first quarter, the share of the manufacturing sector fell heavily from last year`s 47.8% to 21.9%, while that of the service sector soared from 52.1% to 78.1%.

Ja-Ryong Koo bonhong@donga.com