Content View

Two-way FDI Increases by a Large Margin Thanks to Korea-EU FTA

June 01, 2012 11:34|July 04, 2012 13:16
facebook twitter print
It has been nine months since the Korea-EU free trade agreement has been in effect. During this time period, it turned out, two-way foreign direct investment has increased rapidly. Especially in the area of manufacturing, investment has shot up largely due to the abolition of import duties.

According to the Ministry of Strategy and Finance on May 30, the inbound FDI from the EU for the nine months between July 1, 2011 and March 31, 2012 has been US$3,568 million, a 60.5-percent rise from the same period previously. This is a stark contrast from the fact that the overall inbound investment has contracted by 0.8 percent to $10,656 million during the same period.

The investment amount by Korean companies for the same nine-month period was $3,663 million, a 34.1-percent drop. But the amount excluding those investments related to mining and primary commodity extraction rose 65.3 percent to $2,826 million.