Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Foreign direct investment (FDI) into South Korea - statistics & facts
As one of the world’s leading economies, South Korea has become an attractive destination for foreign investors, due to its highly skilled workforce, world-class IT infrastructure, and a robust domestic market. Since 2000, foreign direct investment (FDI) inflows have steadily increased, reaching approximately 14.7 billion U.S. dollars in 2024. Even during the COVID-19 pandemic, when global FDI dropped significantly, South Korea’s contraction was relatively modest, underscoring its reputation as a secure destination for investment. However, despite these developments, inward FDI remains relatively low, accounting for less than one percent of the country’s gross domestic product (GDP). Foreign investors commonly encounter several challenges, such as regulatory hurdles, high corporate taxes, and rigid labor laws that can make entering the market difficult. To address these obstacles, the South Korean government has introduced a series of incentives aimed at creating a more favorable business environment for foreign-invested enterprises (FIEs).
