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[Alpha Biz= Reporter Kim Minyoung] In the first three months of this year, foreign direct investment FDI reached nearly KRW 10 trillion, the highest ever in the first quarter.

According to the Ministry of Trade, Industry and Energy on the 3rd, the amount of FDI investment reported in the first quarter of this year January to March was 7.05 billion dollars about 9.5 trillion won. It is the largest FDI investment ever, up 25.1% from the same period last year. It has more than doubled compared to the first quarter of 2020 $ 3.28 billion. "Considering that about 20% of annual FDI usually comes in the first quarter, the progress rate is good compared to this years target of $35 billion," said an official from the Ministry of Industry.


By industry, investments of $3.08 billion were made in the manufacturing sector, up 99.2% from a year ago. In particular, electricity and electronics, including semiconductors, increased 113.5% to $ 1.45 billion. On the other hand, investment in the service sector was $ 3.85 billion, down 2.5 percent from the previous year.

By country, investment from China, Taiwan and Hong Kong was the largest. It accounted for 30.1% of the total FDI investment, up 146.7% from a year ago to $ 2.12 billion. As Korea-Japan relations improved, FDI from Japan reached $ 1.13 billion, up 281.8% from the previous year. Investment in the United States and the European Union EU fell 3.4% and 69.8%, respectively. The government believes that the base effect of the large investment last year is largely due to it.

By type, M amp; A investment rose 115.4% to $ 3.19 billion, while greenfield investment to build production plants fell 7.1% to $ 3.86 billion. If this trend continues, it is expected that the government will be able to attract $ 35 billion annually.

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/ 알파경제 Kim Minyoung 기자