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S. Korea's Q3 overseas direct investment dips 24% on pandemic

South Korea's overseas direct investment (Yonhap)
South Korea's overseas direct investment (Yonhap)
SEJONG -- South Korea's overseas direct investment tumbled 24 percent in the third quarter of the year as the coronavirus pandemic dented global investment flows, government data showed Friday. 

The value of investments made by South Korean companies came to $10.77 billion in the July-September period, down 23.9 percent from a year earlier, according to the data from the Ministry of Economy and Finance.

It marked the third consecutive quarterly decline. Overseas direct investment fell 4 percent on-year in the first quarter before plunging 27 percent in the April-June quarter.

South Korea's net overseas direct investment, or total investments minus withdrawals, stood at $8.74 billion in the third quarter, down 20.2 percent from the same period last year.

The ministry said the sharp third-quarter decline resulted from the spread of COVID-19, which made economic activity remain in the doldrums across the world.

In particular, South Korea's investment in overseas real estate nose-dived 78.9 percent to $500 million.

The United States received the largest amount of South Korean investment, with its ratio reaching 20.1 percent, followed by China with 15.3 percent.

By sector, investments made by South Korean financial and insurance companies sank 37.4 percent on-year to $3.79 billion in the third quarter.

Manufacturing firms' overseas investments rose 2.4 percent to $3.61 billion, snapping the fourth straight quarter of decline, according to the data. (Yonhap)