South Korea’s overseas direct investment dropped sharply by 22.2% last year, and its investment in China dropped by 78.1%

Data released by South Korea's Ministry of Strategy and Finance on Friday showed that total overseas direct investment by South Korean companies fell by 22.2% to US$63.38 billion in 2023, the first annual decline since 2020. Among them, direct investment in China fell by 78.1% to US$1.87 billion. China was South Korea's seventh-largest investment destination last year, not among the top five investment destinations for the first time since 1992.

Last year, Korean companies made the largest direct investment in the United States, at US$27.72 billion, followed by the Cayman Islands (US$6.17 billion), Luxembourg (US$4.95 billion), Canada (US$3.6 billion) and Vietnam (US$2.64 billion).

By industry, overseas investment in foreign insurance and finance fell by 15.5% to $25.66 billion, and investment in foreign manufacturing also fell by 19.7% to $20.25 billion.

Investment in overseas real estate fell 42.6% to $4.24 billion, while investment in foreign mining increased 40.1% to $3.38 billion.