S. Korea’s overseas direct investment down 2.7 pct in Q2

South Korea’s overseas direct investment fell 2.7 percent on-year in the second quarter amid growing uncertainties in the global economy along with geopolitical risks, the finance ministry said Friday.

Investments made by South Korean companies overseas totaled US$15.6 billion during the April-June period, down from $16.1 billion a year earlier, according to data compiled by the Ministry of Economy and Finance.

“The investment sentiment remained weak amid uncertainties surrounding the global economic recovery, prolonged monetary tightening policies and global disputes,” the ministry said in a statement.

By sector, offshore investment in the insurance and financial sector decreased 17.4 percent to $5.33 billion in the second quarter. Investment in the manufacturing sector dropped 10.5 percent to $3.61 billion.

On the other hand, investment in the mining sector surged 42.9 percent to $1.6 billion, and the telecommunications segment posted a 41.9 percent increase to $1.32 billion.

The United States remained the top investment destination for South Korea with $5.96 billion, although it marked a 7.2 percent on-year decline.

Investment in the Cayman Islands dropped 24 percent to $1.11 billion, followed by Canada with $1 billion, down 15.2 percent, the data also showed.