Foreign investment in S.Korea jumps to 10-year high

SEOUL, (AFP) - Foreign direct investment in South Korea rose to a 10-year high this year, boosted by the country’s fast economic recovery and confidence about growth prospects, a government report showed Wednesday.

Investment pledged by foreigners this year reached 12.9 billion dollars, up 12.1 percent from a year earlier, the Ministry of Knowledge Economy said.

“The gain reflects confidence about our solid economic fundamentals,” it said in a statement, adding tensions with North Korea had no serious impact.

In the fourth quarter of 2010, foreign investment rose 62 percent year-on-year to 5.61 billion dollars, it said.

Next year South Korea aims to attract 15 billion dollars in foreign investment, the ministry said, citing the country’s fast economic recovery.

Investment from the United States rose 28.3 percent to 1.9 billion dollars this year, while that from Japan gained 7.7 percent to 2.08 billion. Investment from European countries fell 41.7 percent to 3.09 billion dollars.

The ministry said efforts to build up new green-growth industries fuelled overseas investments in such areas as biomedicine, solar energy and wind power generation.