Overseas Investment Hits Record High of $28 Bil.

South Korea's Overseas Investment Hits Record High of $28 Bil.

By Lee Hyo-sik
Staff Reporter

South Korea's investment in foreign countries rose to an all-time high last year on easing of investment regulations and businesses' aggressive outward exploration of new markets. Companies also invested a great deal of money abroad to develop and secure oil and other natural resources in light of higher prices on surging demand from China and other emerging economies.

According to the Ministry of Finance and Economy Wednesday, overseas direct investment totaled $27.6 billion in 2007, up 49.2 percent from $18.5 billion a year earlier. It is the highest since the ministry began compiling data in 1981.

The ministry attributed the investment growth to government efforts to boost this. The government has eased rules governing outbound investment to help facilitate capital outflow to curb the won's rise against the dollar and other currencies.

``Large companies aggressively invested overseas in line with their globalization drive, setting up a number of branches particularly in emerging Asian economies. Natural resource development projects were also behind the boom amid high-energy prices,'' it said.

But the ministry also said the country's outward investment accounted for only 5.3 percent of its gross domestic product in 2006, significantly lower than the average 30.7 percent for advanced countries.

Large corporations spent $15.1 billion on overseas projects last year, up 31.7 percent from 2006, while the outbound investment by small- and medium-sized firms jumped 90 percent to $10.7 billion. Individuals' overseas investment rose 26.2 percent to $1.7 billion

By sector, investments in real estate and business services areas soared 384.5 percent and 211 percent, respectively, from a year ago, while manufacturing investment rose only 16.5 percent. Local companies reduced their investment in the mining and transportation businesses by 20.1 percent and 12 percent, respectively.

By country, China attracted the largest direct investment totaling $6.4 billion, up 43.8 percent, while local companies and individuals invested $4.3 billion in the United States, up 100.4 percent. Vietnam was the third largest investment destination, attracting $2.5 billion.

The ministry said large-scale investments worth more than $100 million were valued at $9.2 billion, accounting for 33.5 percent of the total.

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South Koreans' Overseas Property Purchases Soar 57% In 2007

1/24/2008 12:09:54 AM South Korean residents property purchases in foreign countries jumped 57% in the year 2007 from the previous year, the Bank of Korea, or BoK said Thursday. This was due to decline in government regulations.

During the year 2007, overseas property purchased by residents totaled US$ 1.2 billion, larger than the US$755.1 million in the prior year, the BoK said.