Up 32.3% from Q2 last year, marking 4 consecutive quarters of growth

Finance and insurance account for half of total; IT sector surges 265%

Investment in US and Japan rises; Europe and Latin America decline

An advertisement for US stocks at a brokerage in Seoul [Yonhap]
An advertisement for US stocks at a brokerage in Seoul [Yonhap]

South Korea's overseas direct investment jumped more than 30 percent in the second quarter of this year compared with the same period last year.

Amid global portfolio diversification by the finance and insurance sector and expanding overseas entry by information technology companies, investment flowing into the United States accounted for more than 40 percent of the total.

According to the "Q2 2026 Overseas Direct Investment Trends" report released by the Ministry of Economy and Finance on Tuesday, total overseas direct investment from April through June reached $20.52 billion, up 32.3 percent from $15.5 billion in the same period last year. It marked the fourth consecutive quarter of year-on-year growth since the third quarter of last year. However, the figure was down $1.6 billion from the first quarter of this year ($22.12 billion).

Overseas direct investment refers to investments made by domestic individuals or companies to acquire stakes in foreign firms or to establish and operate overseas branches and offices.

Cumulative overseas direct investment for the first half of the year reached $42.64 billion, up 35.1 percent from the same period last year. Net investment for the second quarter, which reflects capital repatriation, came to $11.2 billion, a 13.5 percent increase year on year.

By sector, finance and insurance investment totaled $10.48 billion, up 33.4 percent from a year earlier, accounting for 51.1 percent of total investment. The information technology sector jumped 265.3 percent, from $750 million to $2.73 billion. Manufacturing rose 3.2 percent to $3.57 billion, and science and technology services edged up 0.5 percent to $660 million. Real estate, by contrast, fell 7.5 percent to $660 million.

Among destination countries, the United States attracted the largest share at $8.86 billion — a 53.6 percent increase from a year earlier — representing about 43.2 percent of total overseas direct investment. Investment in Japan surged 708.4 percent, from $300 million to $2.46 billion, while Indonesia rose 91.1 percent to $1.02 billion. Luxembourg climbed 14.2 percent to $1.59 billion, while the Cayman Islands fell 14.4 percent to $1.54 billion.

By region, North America investment rose 50.3 percent to $9.19 billion and Asia climbed 68.8 percent to $5.57 billion. Europe declined 9.4 percent to $2.98 billion and Latin America fell 10.6 percent to $2.14 billion, reflecting diverging regional trends.

The Ministry of Economy and Finance said global portfolio diversification by the finance and insurance sector seeking to broaden revenue streams, along with expanded overseas entry by Korean companies led by the IT sector, drove the second-quarter investment increase. The ministry added that it plans to strengthen communication and cooperation with major investment destination countries to support the stable business operations of Korean companies abroad.


fact0514@heraldcorp.com