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In 2024, foreign direct investment (FDI) pledges to South Korea reached a record high of about **** billion U.S. dollars, reflecting the country's growing attractiveness to global investors despite ongoing economic challenges. However, actual FDI inflows were significantly lower, showing a disparity between commitments and realized investments.

Key sectors and contributors

The finance and insurance sector secured the highest level of FDI pledges in 2024, followed closely by the electrical and electronics industry. However, actual investments in these sectors fell short of the pledged amounts. Among the major contributors, Japan, China, and the United States made notable commitments, while Singapore stood out as the largest source of realized investments. 

Steady growth in FDI stock

The steady increase in FDI inflows has driven the expansion of South Korea’s inward FDI stock, which reached approximately *** billion U.S. dollars in 2023 – over six times higher than 20 years ago. The influence of foreign investment can also be seen in the growing share of FDI stock within South Korea's overall economy. In 2023, FDI stock accounted for around **** percent of the nation’s gross domestic product (GDP).