South Korea's overseas direct investment jumped to a record high in 2011 as
domestic companies pushed to increase spending on mining and other resource
development projects, a government report showed Thursday.
Overseas
investment made by South Korean companies and individuals amounted to US$44.49
billion last year, up 29.5 percent from a year earlier when it stood at $34.36
billion, according to the report by the Ministry of Strategy and
Finance.
It was higher than the previous record high of $36.81 billion
in 2008.
Overseas direct investment usually refers to spending made by
domestic companies and individuals to take at least a 10 percent stake in a
project or business underway in other countries, the ministry said.
The 2011 investment spike stemmed mostly from increased investment in mining and
resource development projects, which doubled to $20.37 billion from a year
earlier, the report showed.
The U.S. was the largest investment
destination for South Korea, with $16.43 billion invested in the country. China
and Australia came next with $4.87 billion and $4.11 billion, respectively, the
report showed.
The lingering eurozone debt crisis, however, led to a
decline in investment bound for European countries. South Korea's investment for
the region plunged 44.2 percent on-year to $4.36 billion.
The ministry
expects that overseas direct investment will likely continue to grow this year,
driven by more demand for natural resources development and other business
opportunities.
"Global fiscal troubles and a possible economic
slowdown in emerging countries are aggravating uncertainties over the investment
environment," the ministry said.
"Still, overseas direct investment
will likely keep its upward trend this year thanks to our companies' expanded
investment for overseas mergers and acquisitions and more spending on natural
resources development projects," it added.
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