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S Korea's '05 foreign direct investment plans fall
1/5/2006
SEOUL, Jan 4 (Reuters): Foreign direct investment plans received by South Korea fell 9.6 per cent in 2005 to $11.56 billion and were expected to be a similar value in 2006, the commerce ministry said today.
In contrast, the value of foreign direct investment plans had almost doubled in 2004 to $12.79 billion.
The 2005 figures are likely to disappoint the government, which has vowed to make the country a financial hub in northeast Asia, even as neighbouring China has emerged as a hot destination for investment.
The ministry said high energy costs and the weak US dollar depressed the foreign direct investment plans into Asia's fourth-largest economy in 2005.
The ministry said South Korea expected foreign direct investment plans in 2006 to be worth around $11 billion.
There are risks in 2006 from firm oil prices, rising interest rates in South Korea and uncertain prospects for the won, despite expectations for a healthy global economy, the ministry said.
In a separate statement, the same ministry said South Korean companies would probably win foreign industrial plant and construction orders worth more than $16 billion in 2006.
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