Seoul: South Korea's overseas direct investment rebounded for the first time in three years in 2025, driven by shifts in global financial markets and increased corporate spending, the finance ministry said Friday.
According to Yonhap News Agency, overseas investments made by South Korean companies jumped 8.7 percent on-year to US$71.88 billion last year, based on data compiled by the Ministry of Finance and Economy. After reaching a record high of $83.48 billion in 2022, overseas investment declined over the next two years before rebounding in 2025.
The ministry attributed the increase to a combination of factors, including a trend toward interest rate cuts, strong global stock markets, and expanded investment as companies responded to changes in global economic conditions. The United States accounted for the largest share of South Korean investment, totaling $25.27 billion in 2025.
The 2025 tally for South Korean investment in the U.S. marks a 12.9 percent spike from a year earlier, as well as the first on-year increase since 2022. Investments in the financial and insurance sector rose sharply, while investment in the manufacturing sector remained steady, according to the ministry.
The Cayman Islands followed with $8.44 billion, Luxembourg with $6.34 billion, and Singapore with $3.82 billion. By sector, investment in overseas financial and insurance businesses surged 46.9 percent from a year earlier to $37.89 billion. Overseas manufacturing investment also increased 4.1 percent on-year to $17.11 billion.
Combined investment in the financial, insurance, and manufacturing sectors accounted for about 77 percent of the total, leading the overall increase, the ministry said.