□ On September 15, Korea Eximbank (www.koreaexim.go.kr, Chairman & President Yong Hwan Kim) announced that foreign direct investment (FDI) made by public institutions in the first half of 2011 reached a record level at USD 3.52 billion.

○ FDI made by public institutions during the first half of 2011 increased by 238% from that of 2010, thanks to investments by public resource development enterprises such as Korea National Oil Corporation and Korea Gas Corporation. The amount accounts for 29% of the nation’s total investments in the first half of USD 12.14 billion in terms of remittances.

□ By industry, investments of USD 3.38 billion in the mining industry comprised the largest portion of FDI as a result of government policies in favor of bigger, specialized resource development. The finance and insurance industries received the second largest amount of FDI with USD 90 million followed by electricity, gas, steam, and water industries with USD 40 million.

□ Regionally, FDI made by public institutions to Europe increased to USD 1.13 billion, the largest increase year on year thanks to large-scale M&As. Investments to North America and Oceania also increased with USD 1.18 and USD 760 million, respectively.

※ Top five investment destinations: Canada, Australia, the United Kingdom, the Netherlands, and the United States

□ With FDI by public institutions continuously increasing, accumulated FDI as of the end of first half of 2011 totaled USD 19.63 billion, and accounted for more than 11% of the accumulated total FDI by Korea of USD 175.47 billion.

□ An official from Korea Eximbank stated, “The role of public institutions as major investors will increase as a result of deregulation and financing support policies by governments. With the Korean government working to increase independent resource development rates and FDI by public institutions anticipated to increase even further, public institutions should seek new engines for growth in various sectors overseas.”