FDI to Korea Drops 35%
From Reuters:
Foreign direct investment plans lodged with South Korea fell for the fourth successive quarter in the April-June period, data showed on Wednesday, denting the Asian nation’s ambition of becoming a regional business hub. The commerce ministry said foreign direct investment commitments fell 35 percent to $1.76 billion for the second quarter from a year earlier, following 28 percent and 3.9 percent annual drops respectively for the previous two quarters.
Analysts listed high equity valuations, high costs of doing business and an inflexible labour market among the factors that have been pushing foreign investors away from South Korea and toward cheaper places such as China, Vietnam and India.
There are a variety of reasons for the drop in FDI to Korea, but I think the Lone Star witch hunt is the straw that broke the camel’s back.
[…] [GI Korea] FDI to Korea Drops 35% Published: Thu, 05 Jul 2007 19:59:48 +0000 From Reuters: Foreign direct investment plans lodged with South Korea fell for the fourth successive quarter in the April-June period, data showed on Wednesday, denting the Asian nation’s ambition of becoming a regional business hub. The commerce ministry said foreign direct investment commitments fell 35 percent to $1.76 billion for the second quarter from a year […] Read More… […]
It's the circle of life; Korea used to be the darling for companies needing cheap labor.
But now the working class has graduated to Prada bags and Gucci sunglasses and no one wants to hold a bluecollar job anymore.