□ According to the latest report by the Overseas Economic Research Institute of Korea Eximbank, foreign direct investment in the 1Q of 2010 was similar with that of the previous year with the exception of FDI in the manufacturing sector and the Asian region, which recorded increases in terms of FDI.

□ The report titled FDI trends in 2010 1Q stated that FDI in the 1Q totaled USD 3.3 billion, a decrease of 1.8% from the previous year in terms of realized FDI but an increase of 76.0% in terms of registered FDI.
※Unless specified otherwise, statistics refer to realized totals.

○ The totals reflect a base effect derived by expansion in investments and a decrease in large investments. Monthly comparisons indicate a YoY increase of 31.4% in March.

○ By industry, manufacturing recorded increases of 20.6% or USD 1.1 billion while mining-last year's top industry in terms of investments-recorded a decrease of 10.2% or USD 770 million.

○ Regionally, investment in Asia and Middle East regions grew by 20.7% and 94.1%, respectively, and investment in North America and Europe declined by 10.0% and 30.2%, respectively.

○ The report indicated fewer large-scale investments as investments of over USD 100 million dropped from 32.1% to 20.4%. In addition, investments in large corporations declined by 12.6% while investments in SMEs declined by 31.9%.

○ Meanwhile, overseas natural resource development indicated growing importance as public sector FDI grew by 8.8% in 2008, 23.1% in 2009, and 21.5% in the 1Q of 2010.

□ According to the Overseas Economic Research Institute, the Euro zone economic crisis has become a new significant variable; however, FDI in 2010 is expected to recover as the global economy regains its foothold.

○ Korea's FDI to GDP was 2.3% in 2009, much smaller that the ratios of developed countries; however, the FDI to GDP ratio is increasingly gaining in importance as its contribution to export increased by approximately 32%.

○ In fact, UNCTAD recently released a report highlighting the relevance of FDI to world economic growth and corporate profitability. Considering the latest signs of economic recovery, FDI in 2010 should record steady increases.