South Korea Q3 FDI notifications rise 10.8% on semiconductor, AI demand
South Korea's foreign direct investment notifications rose 10.8 percent year-on-year in the third quarter to $22.9 billion, while FDI arrivals jumped 30.6 percent to $14.87 billion, led by demand for semiconductors and AI infrastructure equipment, government data showed.
The figures cover the July-September period. In a press release, the ministry said South Korea's strong economic fundamentals appeared to have helped attract foreign direct investment despite uncertainties stemming from prolonged tensions in the Middle East.
FDI notifications for building or expanding manufacturing facilities accounted for 80 percent of the total, or $18.52 billion, the ministry said. The remaining notifications went toward mergers and acquisitions.
By origin, FDI notifications from the United States jumped 35.1 percent to $6.69 billion in the third quarter. Notifications from the European Union fell 3.9 percent to $2.41 billion, while those from Japan declined 47.9 percent to $1.88 billion. China's FDI notifications dropped 39.7 percent to $1.74 billion. Among the listed sources, the United States was the only one to record an increase.
The ministry said the government will seek to attract foreign investment in semiconductors, physical AI and AI data centers. It identified those three areas as growth engines for Asia's fourth-largest economy.