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S. Korea's ODI Posts Steep Rise, FDI Increases by Small Margin

Written: 2022-07-27 12:24:08Updated: 2022-07-27 14:37:49

S. Korea's ODI Posts Steep Rise, FDI Increases by Small Margin

Photo : YONHAP News

South Korea's overseas direct investment(ODI) has posted a steep rise since 2000, while foreign direct investment(FDI) also managed to increase, albeit by a smaller margin.

According to the Korea Enterprises Federation on Tuesday, ODI jumped two-thousand-465-point-seven percent between 2000 and 2021. FDI, on the other hand, expanded 501-point-nine percent in the same period, generating a net investment outflow of 311 billion dollars.

ODI expanded around eleven-point-six times more than the country's gross domestic product(GDP), a higher multiplier than all Group of Seven(G7) member nations.

FDI, meanwhile, jumped two-point-four times more than the GDP, lower than Britain, France, Italy and the United States.

While ODI in South Korea was zero-point-49 times larger than FDI in 2000, that ratio surged to two-point-one times in 2021, higher than six of the G7 member states.

The business group cited South Korea's relatively small domestic market, excessive market regulations and weak tax system competitiveness behind the increased investment outflow.

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