Capital flows to S. Korea

Capital flows to S. Korea

SEOUL (AFP): Foreign Direct Investment (FDI) in South Korea rose by 32. 5 percent from a year ago to US$2.05 billion in the first ten months of this year, backed by the nation's drive for economic opening, officials said yesterday.

Foreigners launched 488 new projects worth $1.25 billion in the 10-month period, up 50.5 percent year-on-year in value, and brought in an additional $805 million for 296 existing projects, the Ministry of Finance and Economy (MFE) said.

"The record foreign investment was attributable to South Korea's continued industrial liberalization, together with the government's efforts to accommodate more advanced foreign technology," an MFE official said.

With government favors, foreign companies with sophisticated technology in such fields as electronics, machinery and chemical engineering, more than doubled their direct investment to some $298 million, the official said.