South Korea received some 33 per cent less “greenfield” foreign direct investments (FDI) as of 2020, compared with the amount before the start of the US-China trade war in March 2018, a report showed on April 17.
Greenfield investment refers to a type of FDI in which a parent company sets up a new affiliate in a different country rather than buying one and builds its own operations from the ground up.
“When three-year greenfield FDIs before and after the conflict are compared, the European Union’s growth rate amounted to 47 per cent, followed by China with 13.5 per cent, Japan with 12.1 per cent, and the United States with 5.7 per cent,” a report compiled by the Korea Chamber of Commerce and Industry (KCCI) showed.
“That of Korea stood at minus 32.6 per cent, which is far below the world average of 5.6 per cent,” it added.
While South Korea has been struggling with FDI, the EU has been a key benefactor from the…