South Korea's overseas direct investment jumps 36% in Q1 on financial sector surge

South Korea's overseas direct investment rose more than 36 percent in the first quarter from a year earlier, extending its expansion to a third consecutive quarter. The increase was driven by a surge in overseas financial investment as investors sought to diversify returns amid a global equity rally. Investment in the United States more than doubled, led by the financial and insurance sector.

The Ministry of Economy and Finance released its first-quarter 2026 overseas direct investment report Tuesday, showing total outbound investment from January through March reached $21.74 billion, up 36.2 percent from $15.96 billion in the same period last year. The increase follows gains of 33.7 percent in the third quarter of last year and 20.9 percent in the fourth quarter.

By sector, financial and insurance led with $13.38 billion, followed by manufacturing at $3.4 billion, information and communications technology at $1.19 billion, and science and technology services at $910 million. Financial and insurance investment climbed 63.0 percent, while ICT surged 220.4 percent and science and technology services jumped 322.2 percent. Manufacturing, by contrast, fell 5.7 percent.

By region, North America attracted the most investment at $10.26 billion, followed by Europe at $5.13 billion, Asia at $3.5 billion and Latin America at $2.36 billion. North America led the expansion with a 69.2 percent increase, while Europe rose 40.1 percent.

By country, the United States accounted for the largest share at $10.15 billion, followed by Luxembourg at $2.83 billion, the Cayman Islands at $2.08 billion, Singapore at $1.05 billion and Vietnam at $730 million. Investment in the US surged 107.6 percent from a year earlier, with financial and insurance sector investment alone reaching $6.9 billion.

The government attributed the expansion to a rise in globally diversified and alternative investments aimed at diversifying returns, supported by strong global equity markets since the second half of last year. It plans to closely monitor shifts in external investment conditions — including interest rate increases in Japan and the EU — while strengthening cooperation with major investment destinations to support the stable overseas operations of South Korean companies.