Korea FDI notifications rise 10.8% in Q3 on chip, AI demand

Foreign direct investment (FDI) notifications in Korea rose 10.8 percent in the third quarter from a year earlier, driven by strong global demand for Korean semiconductors and equipment for AI infrastructure, government data showed Wednesday.

FDI notifications reached $22.9 billion in the July-to-September period, while FDI arrivals jumped 30.6 percent to $14.9 billion, the Ministry of Trade, Industry and Resources said in a press release.

“Korea's strong economic fundamentals appear to have helped attract foreign direct investment despite uncertainties stemming from prolonged tensions in the Middle East,” the ministry said.

FDI notifications for building or expanding manufacturing facilities accounted for 80 percent of the total, or $18.5 billion, with the remainder going toward mergers and acquisitions.

FDI notifications from the United States jumped 35.1 percent to $6.7 billion in the third quarter.

Those from the European Union, Japan and China, however, fell 3.9 percent, 47.9 percent and 39.7 percent, respectively, to $2.4 billion, $1.9 billion and $1.7 billion during the period.

The government will seek to attract foreign investment in semiconductors, physical AI and AI data centers, three areas it has identified as growth engines for Asia's No. 4 economy, the ministry said.

Yonhap