Foreign direct investment (FDI) pledges to South Korea soared to a new peak in 2025, exceeding $36 billion, as per government data released on Wednesday. The country witnessed a 4.3% increase in FDI commitments compared to the previous year, reaching $36.05 billion. Additionally, the actual investment inflow surged by 16.3% to $17.95 billion during the same period.
The Ministry of Trade, Industry, and Resources reported a 14.6% year-on-year decline in FDI pledges by the end of June, which rebounded significantly in the latter half of the year. This resurgence followed the transition in the country’s administration from former President Yoon Suk Yeol to President Lee Jae Myung. The Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju in late October was also instrumental in attracting foreign investments.
During the APEC summit, seven prominent global companies, including Amazon Web Services (AWS), Renault, Amkor Technology, and Siemens Healthineers, announced plans to invest a collective $9 billion in South Korea. Notably, greenfield investment pledges in the country reached an all-time high of $28.59 billion in 2025, marking a 7.1% increase from the previous year, with a particular focus on advanced industries like artificial intelligence (AI), semiconductor, and biohealth.
In terms of sectors, FDI commitments in manufacturing grew by 8.8% to $15.77 billion, with a significant influx in the materials sector to support advanced industries amid global supply chain challenges. The service sector also saw a 6.8% increase in commitments, totaling $19.05 billion, driven by investments in AI data centers and online platforms.
Fresh investment pledges from the United States spiked by 86.6% to $9.77 billion, with a strong emphasis on the metals, distribution, and IT sectors. Meanwhile, FDI commitments from the European Union rose by 35.7% to $6.92 billion, while those from Japan and China experienced declines to $4.4 billion and $3.59 billion, respectively. The Ministry expressed its commitment to enhancing incentives and regulatory frameworks to further attract foreign investments in the upcoming year.
