Korea FDI pledges hit third-highest on record as chip and AI bets roll in

South Korea drew $22.9 billion in foreign direct investment pledges in the first three quarters of 2026, up 10.8 percent from a year earlier, the industry ministry said Wednesday, the country's third-highest cumulative total on record.

Arrivals, or investment that actually reached the country, climbed 30.6 percent to $14.87 billion over the same period, the highest first-three-quarter figure ever recorded.

Semiconductor materials, components and equipment, AI data centers, and clean energy projects including offshore wind accounted for much of the strength. The United States led by country with $6.69 billion in pledges, up 35.1 percent. EU pledges came to $2.41 billion, down 3.9 percent. Japan fell 47.9 percent to $1.88 billion and China dropped 39.7 percent to $1.74 billion. On arrivals, the EU jumped 93.7 percent to $4.84 billion and Japan rose 63.0 percent to $780 million, while China fell 41.5 percent to $260 million. US arrivals were nearly flat at $3 billion.

By investment type, greenfield pledges reached $18.52 billion, up 4.0 percent, while M&A pledges rose 53.1 percent to $4.38 billion. Greenfield arrivals slipped 4.9 percent to $7.89 billion, while M&A arrivals more than doubled to $6.98 billion.

Manufacturing pledges fell 34.5 percent to $5.72 billion, dragged down by chemicals at $1.77 billion, down 28.1 percent, and electrical and electronics at $1.75 billion, down 38.5 percent. Service-sector pledges rose 27.8 percent to $14.21 billion, with finance and insurance up 29.8 percent to $5.36 billion and real estate up 72.6 percent to $1.91 billion. Electricity, gas, water, environmental remediation and construction pledges surged 279.5 percent to $2.95 billion.

Arrivals told a different story by sector. Manufacturing arrivals more than doubled to $6.25 billion, led by chemicals at $4.76 billion, up 256.6 percent, while service-sector arrivals edged up 5.6 percent to $8.37 billion.

Looking ahead, the Ministry of Trade, Industry and Energy said it will use its three major projects in semiconductors, physical AI and AI data centers, along with its regional growth strategy, to draw more foreign investment, including through the Invest Korea Summit and regional roadshows.

The figures are provisional, based on data through Sept. 30.