South Korea's Q3 foreign investment jumps 10.8% amid semiconductor and AI demand

South Korea saw a 10.8% increase in foreign direct investment notifications in Q3 compared with the same period last year, reaching $22.9 billion, according to a ministry press release. Total FDI arrivals jumped 30.6% to $14.87 billion, with manufacturing facility projects representing roughly 80% of the $18.52 billion in notifications. The United States was the biggest source, rising 35.1% to $6.69 billion, while the European Union, Japan and China experienced declines of 3.9%, 47.9% and 39.7% respectively.

The ministry attributed the growth to robust global demand for Korean semiconductors and AI-related equipment, noting that the country's strong economic fundamentals helped attract capital despite ongoing Middle-East tensions. It reiterated plans to target further foreign investment in semiconductors, physical AI and AI data centers as key growth engines for the economy.