Business News for February: Foreign Direct Investment
Updated: Sep 5
S. Korea attracts record high FDI of USD 30.45 billion in 2022
Foreign direct investment (FDI) in S. Korea exceeded USD 30 billion for the first time ever in 2022 thanks to an increase in facility investments in the semiconductor and petrochemical sectors but a net outflow of investment capital from the country will also likely hit a record high on a surge in Korean firms’ investment in foreign operations. The Ministry of Trade, Industry and Energy said on Jan. 4 that FDI in the country recorded USD 30.45 billion in 2022, up 3.2 percent from 2021. A total of 3,463 FDI cases were reported, adding 12.1 percent in a year. It is the first time for the country’s FDI to top USD 30 billion. The ministry attributed the record FDI to the government’s efforts to ease regulations and improve foreign investment support programs on top of the country‘s strong manufacturing base.
Global hotel chains bet big on Korea’s resort island of Jeju
Global hotel giants are rushing to open properties on Jeju Island, a hot tourist spot in the southwest corner of the Korean peninsula, as the region grows more popular among tourists from home and abroad. According to multiple sources from the hotel and resort industry, JW Marriott Jeju Resort & Spa will open in Seogwipo located in the south side of Jeju Island in February and offer guests a scenic coastal view. Parnas Hotel Jeju also opened in July last year and Grand Hyatt Jeju in 2020. More global luxury hotel chains are set to launch operations in Jeju, including Banyan Tree and Ananti. Jeju Island has seen an explosive growth in the number of visitors amid rising demand for luxury accommodation options. According to Jeju Tourism Association, more than 15 million people visited Jeju in 2019 before the Covid-19 pandemic. The number of travelers dropped in 2020 and 2021 but rebounded last year to 12 million in the first 11 months.
Wind power giant Vestas to relocate Asia Pacific office to Korea from Singapore
Vestas Wind Systems A/S, a Danish wind power giant, plans to invest USD 300 million in S. Korea and relocate its Asia Pacific headquarters from Singapore, according to sources on Jan. 19. The plans were announced in an investment report event in a hotel in Davos, Switzerland, which was attended by Korean President Yoon Suk-yeol, Minister of Trade, Industry and Energy Lee Chang-yang, and Vestas CEO Henrik Andersen. Vestas is the world’s largest wind turbine company that supplies more than 160 gigawatt (GW) capacity globally. The company is in partnership with many of Korean enterprises, including Korea South-East Power Co. and Sejin Heavy Industries Co. Trade Minister Lee, in the meantime, met with key executives from advanced science technology company Merck Life Science and Swiss pharmaceutical firm Novartis and discussed potential investment ties worth about USD 500 million. Merck Life Science said Korea is one of the candidates to build a new bio subsidiary materials production facility
*This article is extracted from Invest KOREA information center, 2023.