Foreign direct investment or FDI in Korea rose last year, marking an end to several consecutive years of decline.

According to the Ministry of Knowledge Economy, 2008's FDI inched up 11.3 percent year-on-year and marked over US$11.7 billion with a total of 3,700 investments.

The previous downward trend started at the end of 2004 when the numbers took a three-year dip.

Interest in what is sometimes called the soft economy areas such as finance, insurance and banking attracted more investors to Korea, despite the weakened global financial situation.

Also, multinational corporations like IBM and Bosch increased their stakes in local affiliates.

Analyzed by region, the financial crisis halved investment from the U.S. but strengthened the yen, which triggered more investment from Japan. European capital in Korea rose a significant 46 percent to mark $6.3 billion.

The ministry is projecting this year's FDI to reach $12.5 billion on the back of a weak won and governmental support programs.

However, the World Association of Investment Promotion Agencies has projected investment worldwide to drop up to 15 percent in 2009, and some expect Korea will not be excluded from this trend.

Arirang News