May 21, 2020 11:49
Foreign direct investment in Korea is expected to dwindle this year for the second year running due to the coronavirus epidemic, the Federation of Korean Industries said Wednesday.
FDI in 36 OECD member states increased 6.3 percent last year despite harsher global trade protectionism including the U.S.-China trade war, according to the institute.
But in Korea it plummeted 20.6 percent on-year to US$10.57 billion. The FKI blames an unfavorable investment climate including the abolition of corporate tax breaks for foreign-invested companies and the minimum wage hike.
It expects that FDI will drop even further this year because of the epidemic.
"Investment from the U.S., the EU and China, which account for 64.1 percent of total FDI in Korea, is expected to drop further," Kim Bong-man of the FKI said. "We need to concentrate our efforts on luring investment" in newly emerging business sectors including artificial intelligence-assisted technologies.
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