Outward FDI Posted $15.1 Billion during the First Nine Months of 2007

Seoul--(뉴스와이어)--Outward foreign direct investment (declaration basis) during the first nine months of 2007 rose 19.7 percent compared to the same period in the previous year, totaling US$15.1 billion. However, the growth rate has moderated from the previous year.

The overall rise of outward foreign direct investment was helped by the ¡°Measures to Boost Corporate Expansion Overseas and Encourage Overseas Direct Investment¡± announced on January 15, 2007, mitigating the regulations on the outward foreign investment while the adjustment is being made from a rapid increase from 2006. The buoyant development of overseas resources in 2006 has moderated in 2007.

By location, investments in China and the US surged by active investments of large companies. In 2006, 24.4% and 11.4% of total investment were placed respectively in China and the US, while during the first nine months of 2007, 32.1% and 13.3% were placed in China and the US, respectively.

Investment in China expanded with an investment boost in manufacturing by Hynix semiconductor (US$850m), and that in Bermuda increased with an investment boost in mining by SK (US$430m).

Investment in Cambodia and Japan increased, supported by the development of properties and properties of golf courses and services, respectively.

However, outward FDI to Malaysia, which increased much last year, turned to decrease by 35.5% with a reduced volume of investment in property.

By investor, overseas investments of small and medium enterprises (SMEs) and personal investors increased by 77.1% and 39.4%, respectively, whereas those of large companies decreased by 14.7%, particularly in mining and manufacturing.

Investments of small and medium enterprises (SMEs) contributed a large part in construction and property.

Total amount of overseas investments more than US$100 million holds 20.7%, totaling up to US$3.13 billion.

By industry, while property investment surged by 106.2% with active investments of SMEs, manufacturing and mining investments witnessed a slow-down.

Construction and property investments increased, fueled by strong investment activities by SMEs. In particular, total US$470 million has been invested in China for properties while US$190 million has been invested in both Cambodia and Vietnam for construction.

Although investments in mining, related to development of overseas resources, are mainly placed in the US (US$330 million), Bermuda (US$430 million), and Malaysia (US$230 million), the overall investment in mining has fallen with decreased investments of large companies.

Telecommunications investment declined from large companies, besides SK¡¯s investment in the US and Germany, totaling US$110 million.



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