The percentage of South Korea’s overseas direct investment in the United States reached a 35-year high last year, driven by Washington’s incentives for foreign investors, a report showed Monday.
Overseas direct investment by South Korean companies totaled US$63.4 billion in 2023, with 43.7 percent directed to the U.S., according to a report published by the Korea International Trade Association (KITA).
It is the highest U.S. share since 1998.
The Cayman Islands came in next with $6.2 billion, or 9.7 percent, followed by Luxembourg with $5 billion, or 7.8 percent, and Canada with $3.6 billion, or 5.7 percent.
China, which had topped the No. 1 position in the early 2000s, ranked seventh with $1.9 billion, the KITA report said.
The increase in South Korean investment in the U.S. is attributed to various incentives offered by the Washington government, such as the CHIPS Act and the Inflation Reduction Act.
South Korean companies, including major players like Samsung Electronics Co. and LG Energy Solution,
have announced plans to build facilities in Texas and Arizona, respectively.
As a result, South Korea’s share of cumulative foreign direct investment in the U.S. rose to around 2.3 percent between 2020 and 2022, up from 1 percent before 2010, according to the report.
The KITA report also showed South Korean companies had operated a total of 2,432 businesses in the U.S. as of April, with 26.8 percent in manufacturing, 21.6 percent in wholesale, and 16.8 percent in services and retail.
By state, 24.7 percent of these companies are located in California, 11.1 percent in Texas and 7.9 percent in New York.
Source: Yonhap News Agency
