Foreign direct investment pledged to South Korea reached an all-time high in 2018.
The trade ministry attributes the record amount to reduced geopolitical risks linked in North Korea and the country's strong economy.
Ko Roon-hee reports.
South Korea's trade ministry says the amount of foreign direct investment pledged last year came to some 26-point-nine billion U.S. dollars,... up 17-point-two percent compared to the previous year.
It means FDI pledges to South Korea have now surpassed the 20-billion dollar mark for four consecutive years.
Actual investment by foreign companies in 2018 reached around 16-point-4 billion dollars...up more than 20-percent on-year.
This trend was mainly due to reduced geopolitical risks in the region.
The trade ministry says the summits between the leaders of the two Koreas and North Korea and the U.S. reduced such risks... and encouraged overseas companies to pledge investments and seek partnerships with South Korean firms.
Another reason was the fundamental strength of the local economy.
With stable economic conditions, investors' confidence received a boost.
For instance, in December, South Korea became just the seventh country in the world to surpass 600 billion dollars in annual exports.
Other countries on the list include the U.S. and China.
Also, many foreign companies believe South Korea has a high capacity for innovation.
According to the 2018 Bloomberg Innovation Index, South Korea grabbed the top spot for the fifth year in a row.
This means South Korea is leading in research and development expenditure and building high-tech public companies.
By sector, foreign direct investment in the semiconductor, machineries and petrochemical industries increased steadily.
The ministry added that rising interest in industries related to the 4th industrial revolution, such as bio and e-commerce, contributed to the hike.
By country or region, the lion's share of FDI pledges came from the European Union, which rose by almost 27-percent compared to the previous year.
Investment from China increased more than 200-percent,... marking its own record high.
Ko Roon-hee, Arirang News.
