South Korea has reached a record number of FDI pledges in the first three quarters of the year. They amount to $25.18b, according to the Ministry of Trade, Industry and Energy.
Yoo Beop-min, the Industry Ministry’s director general for cross-border investment policy, attributed the heightened interest to the country’s growing economic relationship with Japan.
“Foreign investment pledges in Korea surged to a record high in the third quarter as economic cooperation between Korea and Japan continues to expand,” he said in a press conference on Wednesday.
Inflows from Japan have shot up 412%, reaching $4.69b.
Friendly neighbours
The renewed enthusiasm in Korea-Japan relations comes as the countries have been addressing historical grievances and facing a common threat.
Former Japanese Prime Minister Fumio Kishida visited Seoul in September and expressed his sympathy for what Koreans had to endure during Japan’s colonial rule. The efforts had been ongoing since early last year and made a significant breakthrough in March 2023 when both countries dropped reciprocal economic restrictions over colonial disputes.
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By GlobalDataThe recently elected Japanese PM Shigeru Ishiba has already spoken with South Korean President Yoon Suk Yeol. The South Korean leader congratulated Ishiba on his win and said it looked forward to continuing to rebuild economic ties.
The renewed friendship comes as both countries have been facing security threats from North Korea. Earlier in September, South Korea reported it had detected missiles that launched from Pyongyang which landed in the waters between the Korean Peninsula and Japan.
“We strongly condemn North Korea’s missile launch which is a clear provocation that seriously threatens peace and stability on the Korean peninsula,” South Korea’s Joint Chiefs of Staff said in a statement at the time.
After Yoon’s call with Ishiba on Wednesday (October 2), his office released a statement saying that both leaders recognized the need to work together with the United States “to respond to North Korea’s continued provocations.”
