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EU Investment in Korea Jumps after FTA

June 01, 2012 11:57|July 04, 2012 13:13
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Direct investments by European Union (EU) countries in Korea jumped 60.5% after Free Trade Agreement (FTA) went into effect last July, the Ministry of Strategy and Finance said on May 30.

According to the ministry, EU's foreign direct investment (FDI) from July last year through the end of March this year reached $3.56 billion, up 60.5% over the same span of a year earlier. It contrasts well with overall FDI into Korea which contracted 0.8 percent on-year to $10.65 billion.

EU investments in Korea was focused on manufacturing sector, which jumped by 100.2%. In particular, chemical and electric/electronics sector saw impressive growth rate of 344% and 186.8%. EU investment into service sector reached over $1.9 billion in the same period, up 37.4 percent on-year.

Meanwhile, investment by Korean firms in the EU reached $3.66 billion, a minus growth of 34.1 percent from the year before. If money invested in the mining sector is excluded from the previous year, Korean investment into EU also jumped 65.3 percent on-year.