Korea's overseas direct investment rises 32.3 percent in second quarter

South Korea's overseas direct investment rose 32.3 percent in the second quarter from a year earlier to $20.52 billion, the finance ministry said Tuesday, extending a run of year-on-year gains that began in the third quarter of 2025.

The ministry attributed the increase to Korean companies expanding their overseas operations, particularly in the information and communications technology sector, and to financial and insurance firms pursuing global diversification for higher returns. Investment was down slightly from $22.12 billion in the first quarter of 2026.

By industry, financial and insurance businesses accounted for the largest share at $10.48 billion, up 33.4 percent from $7.86 billion a year earlier, while manufacturing followed at $3.57 billion, a 3.2 percent gain, and information and communications jumped 265.3 percent to $2.73 billion. Science and technology services drew $660 million, up 0.5 percent, and real estate $660 million, down 7.5 percent — the only one of the five largest sectors to decline.

North America remained the top destination at $9.19 billion, up 50.3 percent from a year earlier, while Asia drew $5.57 billion, up 68.8 percent. Europe received $2.98 billion and Central and South America $2.14 billion, both lower than a year earlier at declines of 9.4 percent and 10.6 percent respectively.

By country, the United States was the largest single recipient at $8.86 billion, followed by Japan at $2.46 billion, Luxembourg at $1.59 billion, the Cayman Islands at $1.54 billion and Indonesia at $1.02 billion.

The finance ministry said it will keep a close watch on overseas investment trends amid shifting external economic and investment conditions, including changes in monetary policy in major economies, and will strengthen communication and cooperation with key investment destination countries so that Korean firms operating abroad can conduct stable business activities.