- Registration date2026-10-07
- Attached file
Foreign direct investment (FDI) in Korea on a notification basis reached USD 22.9 billion in the first three quarters of 2026, up 10.8 percent year-on-year. Actual inflows increased 30.6 percent year-on-year to $14.9 billion.
Despite continued uncertainty in the investment environment, including prolonged tensions in the Middle East, foreign investment has continued to flow into promising sectors, underpinned by confidence in Korea’s economic fundamentals.
In particular, significant foreign investment has continued to flow into advanced industries such as semiconductor materials, parts and equipment and AI data centers, supported by Korea’s semiconductor and other industrial supply chains and its AI ecosystem. Analysis also indicates that investment is expanding in clean energy, including offshore wind.
Investment Notifications
Investment notifications reached $22.9 billion in the first three quarters of 2026, up 10.8 percent year-on-year. This was the third-highest January–September total on record, suggesting that the upward momentum in foreign investment has continued.
By type, greenfield investment notifications for new or expanded factories and business sites totaled $18.5 billion, up 4.0 percent year-on-year. After falling 19.8 percent in the first quarter, cumulative greenfield investment growth turned positive in the third quarter, which is viewed as a meaningful improvement. Meanwhile, M&A investment notifications, including corporate equity acquisitions and mergers, rose 53.1 percent to $4.4 billion, maintaining strong growth.
By industry, manufacturing investment notifications fell 34.5 percent year-on-year to $5.7 billion, led by declines in chemicals, down 28.1 percent to $1.8 billion, and electrical and electronic products, down 38.5 percent to $1.8 billion. In contrast, investment in the machinery, equipment, and medical and precision instruments sector and in non-metallic mineral products continued to rise, increasing 145.1 percent to $0.9 billion and 13.0 percent to $0.4 billion, respectively.
Services investment notifications rose 27.8 percent year-on-year to $14.2 billion. Investment increased across most sectors, including finance and insurance, up 29.8 percent to $5.4 billion, and real estate, up 72.6 percent to $1.9 billion. In particular, information and communications, including data centers, posted strong growth, rising 35.8 percent to $2.4 billion.
Investment notifications in electricity, gas, water supply, environmental remediation, and construction, including clean-energy power generation projects, also increased sharply by 279.5 percent year-on-year to $3.0 billion.
By source country, investment notifications from the United States rose 35.1 percent year-on-year to $6.7 billion, with numerous investment projects in promising areas such as semiconductor materials, parts and equipment and data centers. Investment notifications from the European Union remained broadly unchanged from a year earlier at $2.4 billion, down 3.9 percent, while those from Japan and China fell 47.9 percent to $1.9 billion and 39.7 percent to $1.7 billion, respectively.
Actual Inflows
Actual inflows reached $14.9 billion in the first three quarters of 2026, up 30.6 percent year-on-year and marking the highest January–September total on record.
By type, greenfield investment inflows edged down 4.9 percent year-on-year to $7.9 billion, while M&A investment inflows rose 126.0 percent to $7.0 billion, maintaining strong growth.
By industry, actual inflows into manufacturing rose 110.6 percent year-on-year to $6.3 billion. Investment in chemicals and non-metallic mineral products continued to grow, rising 256.6 percent to $4.8 billion and 242.5 percent to $0.4 billion, respectively. Pharmaceutical investment also improved, rising 129.0 percent to $0.3 billion as investment flowed into biotechnology and pharmaceuticals.
Actual inflows into services edged up 5.6 percent year-on-year to $8.4 billion. Performance improved in finance and insurance, up 6.9 percent to $4.0 billion, and real estate, up 46.6 percent to $0.9 billion. In particular, inflows into information and communications rose sharply by 62.7 percent to $1.8 billion.
By source country, actual inflows from the United States were broadly unchanged from a year earlier at $3.0 billion, up 0.7 percent. Actual inflows from the European Union and Japan rose sharply, increasing 93.7 percent to $4.8 billion and 63.0 percent to $0.8 billion, respectively, while those from China fell 41.5 percent to $0.3 billion.
Domestic investment opportunities continue to expand through the three megaprojects in semiconductors, physical AI and AI data centers, as well as regional growth initiatives under the Five Mega-Regions and Three Special Self-Governing Provinces framework. MOTIR plans to carry out a broad range of IR activities to capitalize on these opportunities and attract foreign investment.
In particular, MOTIR will expand IR activities in Korea and abroad, including the Invest KOREA Summit (IKS), Korea’s largest investment promotion event, to sustain foreign investment momentum in promising areas such as semiconductor materials, parts and equipment and data centers. The ministry will also use regional investment promotion caravans to address on-the-ground difficulties faced by foreign-invested companies and strengthen support for not only new investment but also actual inflows and additional investment.