Outbound foreign direct investment (FDI) by residents has increased for the third consecutive quarter.

According to foreign direct investment statistics released by the Ministry of Economy and Finance today (June 30), outbound FDI in the first quarter reached 21.74 billion dollars, a 36.2 percent increase compared to the same period last year.

While outbound FDI decreased by 5.7 percent in the second quarter of last year compared to the same period the previous year, it turned to positive growth in the third quarter of last year and has maintained an upward trend for three consecutive quarters.

By industry, the scale of investment was led by finance and insurance at 13.38 billion dollars, followed by manufacturing at 3.4 billion dollars, information and communications at 1.19 billion dollars, and scientific and technical services at 910 million dollars.

Although investment in manufacturing saw a slight decline, investments in finance and insurance, information and communications, and scientific and technical services increased significantly.

By region, investment totaled 10.26 billion dollars in North America, 5.13 billion dollars in Europe, 3.5 billion dollars in Asia, and 2.36 billion dollars in Central and South America.

The United States was the top destination for outbound foreign direct investment by residents.

Direct investment in the U.S. during the first quarter stood at 10.15 billion dollars, a 107.6 percent increase from a year ago.

This marks the highest level in four years since the first quarter of 2022, when it recorded 28.2 billion dollars (up 147.9 percent).

The Ministry of Economy and Finance analyzed the first-quarter outbound FDI, stating, "It is the result of expanded global financial investment for the purpose of global diversification and alternative investments, following the sustained strength of the global stock market since the second half of 2025."

Authorities define outbound foreign direct investment as investments made by individuals with a residence or domicile in South Korea, or corporations with their main office in the country, to participate in the management of a foreign corporation. This includes acquiring 10 percent or more of shares, or meeting certain requirements such as dispatching executives, providing technology, or securing overseas construction contracts even if the stake is less than 10 percent.

Outbound FDI primarily consists of domestic companies acquiring foreign firms or stakes in them. Small-scale stock purchases by individual investors, often referred to as "Seohak Ants" (individual investors who invest in foreign stocks), are generally not considered foreign direct investment.

(Photo: Getty Images Korea)