Despite continued global geopolitical uncertainty, tensions in the Middle East, and broader economic headwinds, South Korea recorded solid growth in both pledged and realized foreign direct investment (FDI) during the first half of 2026.
FDI pledges, which reflect investors' planned investments, reached USD 14.28 billion, up 9.1% year-on-year. Meanwhile, realized FDI, representing capital actually invested, surged 42.6% to USD 10.73 billion. These results underscore foreign investors' strong confidence in Korea's advanced industrial supply chains and innovation ecosystem.
Key trends during the first half of 2026 point to both a qualitative improvement in investment and increasing diversification of investment sources. Greenfield investment remained the foundation of FDI inflows, totaling USD 10.82 billion, while M&A investment pledges rose sharply to USD 3.46 billion (+64.3% YoY), with realized M&A investment increasing by an impressive 123.3%, reflecting robust strategic investment through mergers and acquisitions.
From an industry perspective, the service sector led overall growth, driven primarily by financial services, insurance, and real estate, with investment increasing 27.9% year-on-year. Within the manufacturing sector, machinery, equipment, and medical precision industries recorded remarkable growth of 243.1%, highlighting sustained investment in Korea's advanced manufacturing capabilities. In addition, investment from Singapore, the United Kingdom, and other countries increased significantly (+65.4%), indicating a broader diversification of investment origins. At the same time, follow-on investments by existing foreign investors accounted for 50.1% of total FDI, while investment continued to be increasingly concentrated in the Seoul metropolitan area.
For detailed statistics by investment type, industry, and region, along with our key insights, please refer to the full report prepared by the Hyesung Global Research Center (HSGRC) via the link below.
