FDI pledges to S. Korea hit record high in 2025 amid eased political uncertainties

Seoul, Jan 7 (LatestNewsX) Foreign direct investment (FDI) pledges to South Korea reached a record high of over $36 billion in 2025, government data showed on Wednesday, thanks to eased political uncertainties here and the Asia-Pacific Economic Cooperation (APEC) gathering held in the country’s southeastern city of Gyeongju.

Last year, South Korea received $36.05 billion worth of FDI commitments, up 4.3 percent from $34.57 billion in 2024, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

In 2025, the actual amount of investment that arrived in the country also surged 16.3 percent from a year earlier to $17.95 billion.

The ministry said FDI pledges to the country had declined 14.6 percent on-year as of end-June but sharply rebounded in the second half after the administration of President Lee Jae Myung set sail to replace the previous administration of former President Yoon Suk Yeol, who was impeached over his failed martial law bid in late 2024.

The APEC summit, held late October in Gyeongju, also helped the country attract foreign investment, it added.

During the APEC gathering, seven global companies, including Amazon Web Services (AWS), Renault, Amkor Technology and Siemens Healthineers, unveiled plans to invest a combined $9 billion in Korea.

Notably, foreign pledges for greenfield investments in Korea rose 7.1 percent on-year to an all-time high of $28.59 billion in 2025, with investment pledges for advanced industries, such as artificial intelligence (AI), semiconductor and biohealth, growing from a year earlier.

By industry, FDI commitments in the manufacturing sector grew 8.8 percent to $15.77 billion, with many new commitments in the materials sector for advanced industries amid global efforts to respond to supply chain uncertainties.

Commitments in the service sector climbed 6.8 percent on-year to $19.05 billion, mainly driven by investment plans for AI data centers and online platforms.

By country, fresh investment pledges from the United States spiked 86.6 percent to $9.77 billion, mainly led by the metals, distribution and IT sectors.

FDI pledges from the European Union jumped 35.7 percent to $6.92 billion, while those from Japan and China went down 28.1 percent and 38 percent to $4.4 billion and $3.59 billion, respectively.

The ministry said it will work to strengthen incentives and streamline regulations to attract more foreign investment this year.

—LatestNewsX

na/