SEOUL, Jan. 7 (Xinhua) -- Foreign direct investment (FDI) in South Korea hit a record high last year, thanks to robust demand in the second half, government data showed Wednesday.
The reported FDI expanded 4.3 percent from a year earlier to reach a new high of 36.05 billion U.S. dollars in 2025, according to the Ministry of Trade, Industry and Resources.
The record performance was attributed to recovering foreign confidence in the South Korean economy and industry, caused by the inauguration of the new government in May last year.
The FDI rebounded in the second half after tumbling 14.6 percent in the first half on the back of political uncertainty, triggered by the former impeached President Yoon Suk-yeol's botched martial law bid in December 2024.
The FDI in the domestic manufacturing industry increased 8.8 percent to 15.77 billion dollars in 2025 compared to the previous year.
Foreign investment in the chemical engineering sector almost doubled, but investment in the electric and electronic, and the machinery, equipment and medical precision device industries declined in double figures.
The FDI in the local service industry gained 6.8 percent to 19.05 billion dollars last year.
Investment in the distribution, and the science and technology sectors logged a double-digit growth, but investment in the finance and insurance segment retreated in double digits.
Direct investment from the United States and the European Union soared in double digits to 9.77 billion dollars and 6.92 billion dollars each, but investment from Japan dropped in double figures to 4.40 billion dollars.
Greenfield investment, which involves factory construction and employment, mounted 7.1 percent to hit a new high of 28.59 billion dollars, while the merger and acquisition investment dived 5.1 percent to 7.46 billion dollars. ■