The Korea Chamber of Commerce and Industry said in its report on April 17 that the EU benefits from trade disputes between the US and China when it comes to green foreign direct investment (FDI).
“Between the three-year periods before and after March 2018, the average annual foreign direct investment in the EU increased by 47 percent,” it said, adding, “the rate of increase was 13.5 percent in China, 12.1 percent in Japan and 5, 7 percent in the United States, while the decline was 32.6 percent in South Korea, 28.7 percent in India and 12.3 percent in the ASEAN region. ” The global average rose 5.6 percent, the rate of increase in advanced economies was 26.2 percent and the rate of decline in emerging economies was 4.5 percent.
As for the ratio of reinvestment of returns on FDI, the average in OECD member countries increased from 28.8 percent to 43.7 percent from 2013 to 2020, while in South Korea it fell from 49 percent to 18.2 percent. The eight-year averages for the former and the latter were 35 percent and 24.7 percent, respectively.
Between the two three-year periods, the average reinvestment rate in the OECD rose from 36.5 percent to 40.3 percent, and that in South Korea fell from 44.8 percent to 32.1 percent. Those in the United States and Germany increased by 4.7 percentage points and 4.4 percentage points, respectively. Those in Canada and Chile fell by 5.9 percentage points and 4.7 percentage points, respectively.
According to the report, the ratio of global M&A agreements with a size of over $ 5 billion was 29.9 percent each in 2011 and 39.7 percent in 2021, and the number of such trades increased from 69 to 197 during that period. The ratio rose 4.2 percentage points in the United States, 28.4 percentage points in China and 29.1 percentage points in Germany.
“On the other hand, in South Korea, the figure was one from 2016 to 2021,” it said, adding, “improving the business environment in the form of deregulation, improving labor market flexibility and so on is required for more reinvestment in South Korea. Korea.”