Foreign direct investment (FDI) in South Korea surged 35.1% in the first half of 2026, reaching $42.64 billion compared to the same period last year. The increase was driven by global diversification in the financial and insurance sectors, as well as the expansion of the information and communication industry.
According to the Ministry of Economy and Finance's report on FDI trends for the second quarter of 2026, the total FDI for the first half was recorded at $42.64 billion.
By sector, the financial and insurance industry saw investments of $24.03 billion, marking a 48.7% increase year-on-year, accounting for approximately 56.4% of total investments.
Investments in the information and communication sector skyrocketed to $3.92 billion, a staggering 250.7% increase. This amount alone surpassed last year's total annual investment of $2.44 billion. The government attributed the rise in investment to the global diversification efforts of the financial and insurance sectors and the overseas expansion of companies in the information and communication industry.
In contrast, manufacturing sector investments totaled $7.08 billion, reflecting a modest 0.2% increase. The scientific and technological services sector grew by 80.1% to $1.57 billion, while the real estate sector saw a decline of 16.9% to $1.51 billion, highlighting disparities among industries.
Regionally, investments in the United States reached $19.15 billion, a 79.6% increase, maintaining its position as the largest investment destination, accounting for about 44.9% of total FDI.
Luxembourg followed with $4.45 billion, up 57.8%, while investments in the Cayman Islands decreased by 10.5% to $3.48 billion. Japan saw a remarkable increase of 430.6% to $2.67 billion, and Singapore's investments rose by 40.4% to $1.53 billion.
In terms of regions, North America experienced a 60.8% increase, totaling $19.59 billion. Asia saw $9.25 billion, up 44.8%, and Europe increased by 16.5% to $8.2 billion. However, investments in Latin America decreased by 9.5% to $4.41 billion.
For the second quarter alone, FDI reached $20.52 billion, a 32.3% increase compared to the same period last year. Although there has been a continuous increase since the third quarter of last year, this figure is lower than the previous quarter's $22.12 billion.
In the second quarter, the financial and insurance sectors continued to show significant growth, with investments of $10.48 billion, a 33.4% increase, while the information and communication sector surged by 265.3% to $2.73 billion. The manufacturing sector saw a 3.2% increase to $3.57 billion.
After accounting for investment recoveries, the net investment for the first half was $28.85 billion, a 52.7% increase year-on-year. However, net investment in the manufacturing sector decreased by 32.4% to $2.4 billion.
The government plans to monitor changes in monetary policies across countries and the external economic and investment environment, while strengthening communication and cooperation with key investment destinations to support stable operations for companies expanding overseas.
* This article has been translated by AI.
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