Could South Korea's FDI Commitments Surpass $36 Billion in 2025?
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Synopsis
In 2025, South Korea's foreign direct investment (FDI) commitments soared beyond $36 billion. This record surge is primarily due to reduced political uncertainties and the successful APEC summit in Gyeongju, attracting major global companies to invest significantly in the nation.
Key Takeaways
- FDI pledges in 2025 exceeded $36 billion
- Political stability contributed to investment growth
- APEC summit attracted major global investors
- Greenfield investments reached an all-time high
- Growth in AI and advanced industries was notable
Seoul, Jan 7 (NationPress) Foreign direct investment (FDI) commitments to South Korea have soared to a remarkable high of over $36 billion in 2025, according to government reports released on Wednesday. This surge is attributed to reduced political uncertainties and the Asia-Pacific Economic Cooperation (APEC) summit that took place in the southeastern city of Gyeongju.
In the previous year, South Korea attracted $36.05 billion in FDI pledges, marking a 4.3 percent increase from $34.57 billion in 2024, as reported by the Ministry of Trade, Industry and Resources, according to Yonhap news agency.
For 2025, the actual investment that flowed into the nation also experienced a significant increase of 16.3 percent, reaching $17.95 billion.
The ministry noted that while FDI pledges had dropped 14.6 percent year-on-year by the end of June, they rebounded sharply in the latter half of the year following the inauguration of President Lee Jae Myung, who took over from the impeached former President Yoon Suk Yeol.
The APEC summit, held in late October in Gyeongju, played a crucial role in attracting foreign investments, the ministry added.
During the APEC conference, seven international companies, including Amazon Web Services (AWS), Renault, Amkor Technology, and Siemens Healthineers, announced plans to invest a collective $9 billion in South Korea.
Significantly, foreign commitments for greenfield investments in South Korea rose 7.1 percent year-on-year to an unprecedented $28.59 billion in 2025, with investments in advanced sectors such as artificial intelligence (AI), semiconductors, and biohealth showing growth compared to the previous year.
In terms of industry, FDI commitments in manufacturing increased 8.8 percent to $15.77 billion, reflecting new investments particularly in materials for advanced industries, driven by global efforts to address supply chain challenges.
Investment in the service sector also rose, climbing 6.8 percent year-on-year to $19.05 billion, largely fueled by initiatives for AI data centers and online platforms.
By country, new investment pledges from the United States surged 86.6 percent to $9.77 billion, predominantly in the metals, distribution, and IT sectors.
Meanwhile, FDI pledges from the European Union increased 35.7 percent to $6.92 billion, while those from Japan and China saw declines of 28.1 percent and 38 percent, amounting to $4.4 billion and $3.59 billion respectively.
The ministry aims to enhance incentives and streamline regulations to attract more foreign investment in the upcoming year.
Point of View
The surge in foreign direct investment pledges to South Korea reflects the country's resilience and adaptability in the face of political uncertainties. The shift in administration and successful hosting of the APEC summit have clearly fostered a renewed trust among global investors. This trend is promising for South Korea's economic future.
NationPress
08/01/2026
Frequently Asked Questions
What factors contributed to the rise in FDI in South Korea?
The rise in foreign direct investment in South Korea can be attributed to eased political uncertainties and the successful Asia-Pacific Economic Cooperation (APEC) summit, which attracted significant commitments from major global companies.
What is the significance of the APEC summit for South Korea?
The APEC summit held in Gyeongju played a crucial role in boosting investor confidence and facilitating discussions that led to substantial investment commitments from international corporations.
Which sectors saw the most growth in FDI commitments?
The manufacturing sector saw an 8.8 percent increase, while the service sector also experienced growth, particularly in areas related to artificial intelligence (AI) and online platforms.
How is the South Korean government planning to attract more foreign investment?
The South Korean government aims to enhance incentives and streamline regulations to make the country more attractive to foreign investors in the coming year.
Which countries are the largest contributors to FDI in South Korea?
The United States and the European Union are among the largest contributors, with significant increases in their investments, while Japan and China saw declines.
