(Ministry of Trade, Industry and Energy)
(Ministry of Trade, Industry and Energy)

Foreign direct investment pledges to South Korea fell 9.2 percent in the first quarter from a year earlier amid economic uncertainties at home and abroad, the industry ministry said Thursday.

South Korea received $6.41 billion worth of FDI commitments in the January-March period, compared with $7.05 billion logged a year earlier, according to the Ministry of Trade, Industry and Energy.

This year's reading still marked the second-largest amount ever following a record figure logged in the first quarter of 2024.

The amount of investment that actually arrived in South Korea surged 26.4 percent over the period to $3.51 billion in the first quarter of 2025, the ministry said.

"The quarterly decline (in fresh commitments) was attributed to the base effect of last year's record performance and uncertainties arising from the Donald Trump administration's new policy measures. A decrease in US dollar-denominated investments due to the depreciation of the local currency also led to the fall in FDI pledges," the ministry said in a release.

By industry, the manufacturing segment garnered FDI pledges worth $2.33 billion in the first quarter, down 24.5 percent from a year earlier.

FDI pledges in the service sector dipped 7.4 percent to $3.56 billion.

By investor, the United States pledged to make $830 million worth of investments in the first quarter, up 15 percent on-year.

FDI pledges from the European Union more than doubled, spiking 163.6 percent on-year to $1.49 million, while those from China dropped 75 percent to $330 million, the data showed. (Yonhap)