□ KEXIM reported in 18th February, that the amount of FDI in 2009 has lowered, whereas FDI numbers of resource development for mining and real estate has fallen.

□ According to the “FDI trends in 2009” announced by Overseas Economic Research Institute, economic downturn and shaken investors’ confidence brought 15.1% reduction of FDI and 2,488 deduction of the newly built corporate body, 38.3% of the last year’s number.

○Those reduced figures are still below the levels of worldwide FDI declined (38.7% reduction from year 2008 to 2009). Moreover, since 2nd quarter, this downturn trends has been overturned and since 4th quarter, 47.1% of total annual investment has achieved.

○ Overall, investment has decreased, whereas mining became the most preferable investment category due to the high preference for investment in overseas resource development. In contrast, FDI in manufacturer sector, traditionally most preferable investment category has dropped for two years in the series

○ Regionally, investments’ preference has been diversified. FDI in Asian countries, the most preferable investment regional category of the last year, has decreased by 45.2%, while, FDI in North America has increased by 13.0%, and FDI has been on an upward by 61.5% due to the high preference of investment in real estate and leasing service.

○ Increase in FDI to big firms is limited to 0.9%, FDI to Middle-sized firms has lowered by 44.4%. Especially, investment in M&A, overseas resource development, and real estate has boosted and the size of the investment has magnified

Overseas Economic Research Institute reported that the number of export through local subsidiary is amount to $191.6 billion both directly and indirectly and a million of job creation of local workers has occurred in addition to the creation of 20,000 new employments of Koreans.

* Main exports ($ billions): Whole Sale & Retail: 716.2 Manufacture: 449.3 Transport: 53.5

○ Net export improvement encouraged by FDI is more effective to the big firms than to the middle-sized firms. While, job creation effect is much bigger to the middle-sized firms than to the big firms, based on the fact the number of the newly employed workers of middle-sized firms is similar to that of big firm with only one forth of the dollars the big companies has invested.

□ KEXIM provides diverse credit systems including the service of loan and guarantee of an obligation to the national parent companies, local subsidiaries or foreign firms invested by Korean companies to support Korean firm’s FDI. FDI Funding in 09’ is amount to the 3970 billion won and is to increase in ’10 to 5200 billion won to fulfill the surplus of firm’s demand for funding.