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[HYESUNG] Newsletter Vol. 25-28. on “Seoul’s FDI Outlook and Strategic Industries”
HYESUNG, through continued support to their clients with tailored market entry and investment advisory, has published an article within their Newsletter Vol. 25-28. on “Seoul’s FDI Outlook and Strategic Industries”. This article, offering an in-depth analysis of Seoul’s Foreign Direct Investment (FDI) landscape and industries, provides valuable insights into global FDI trends, investment strategies of major global cities, and outlines Seoul’s role in attracting international investors and fostering innovation-driven growth.
Global FDI Trends and Seoul’s Changing Investment Landscape
In 2022, global Foreign Direct Investment (FDI) declined by 12% year-on-year to USD 1.3 trillion. Key factors included the Russia–Ukraine war, global economic slowdown, and growing debt burdens. While FDI inflows to advanced economies plunged by 37%, emerging markets reached record-high levels due to favorable policy shifts and targeted incentives. Seoul experienced a sharp 40% drop in FDI inflows in 2022 to USD 10.8 billion. However, by the first half of 2023, the city began to show signs of recovery, driven by large-scale private equity inflows and increased investment in select manufacturing sectors. Notably, over 90% of Seoul’s FDI is concentrated in service industries, with strong performance in finance, insurance, fintech, and content-related sectors.
How Global Cities Attract FDI: A Comparative Perspective
Leading global cities have adopted tailored investment attraction strategies that leverage their unique industrial strengths and geographic advantages:
London & Berlin: Focus on global talent, robust regulatory frameworks, and linkage to mature markets
Hong Kong: Leverages its open trade and finance systems to connect East and West
Singapore: A financial and logistics hub optimized for capital markets and emerging digital industries
Major Chinese Cities: Promote high-tech industrial clusters through special zones and infrastructure investment
Tokyo: Offers a stable, mature market with well-developed infrastructure and institutions
Across all cities, a common theme emerges: FDI strategies are deeply integrated with national and municipal industrial policies. Investment promotion efforts increasingly emphasize R&D investment and the attraction of global innovation talent.
Seoul’s Eight Strategic Industries
To enhance its competitiveness as a global investment destination, Seoul is actively fostering the following eight strategic industries:
AI (Artificial Intelligence): Yangjae AI cluster, government-backed research and incentives.
Robotics: R&D hubs in Suseo, technology-intensive manufacturing and service convergence.
Bio & Healthcare: Hongneung Bio Cluster, home to over 35% of Korea’s bio companies.
Fintech & Blockchain: Clustered in Yeouido and Mapo, aligned with global financial hub initiatives.
Smart Mobility: Autonomous vehicles, urban air mobility (UAM), part of Seoul’s smart city strategy.
Content: Webtoons, animation, metaverse—export-driven digital content industry.
Beauty & Fashion: K-beauty and fashion convergence with design and tourism.
ICT: Expansion of big data, IoT, AR/VR infrastructure within smart city initiatives.
Through focused development in these sectors, Seoul aims to strengthen its attractiveness to foreign investors and global startups by expanding R&D, building strategic clusters, and creating a future-ready business environment.
[HYESUNG] Newsletter Vol. 25-28. on “Seoul’s FDI Outlook and Strategic Industries”
HYESUNG, through continued support to their clients with tailored market entry and investment advisory, has published an article within their Newsletter Vol. 25-28. on “Seoul’s FDI Outlook and Strategic Industries”. This article, offering an in-depth analysis of Seoul’s Foreign Direct Investment (FDI) landscape and industries, provides valuable insights into global FDI trends, investment strategies of major global cities, and outlines Seoul’s role in attracting international investors and fostering innovation-driven growth.
Global FDI Trends and Seoul’s Changing Investment Landscape
In 2022, global Foreign Direct Investment (FDI) declined by 12% year-on-year to USD 1.3 trillion. Key factors included the Russia–Ukraine war, global economic slowdown, and growing debt burdens. While FDI inflows to advanced economies plunged by 37%, emerging markets reached record-high levels due to favorable policy shifts and targeted incentives. Seoul experienced a sharp 40% drop in FDI inflows in 2022 to USD 10.8 billion. However, by the first half of 2023, the city began to show signs of recovery, driven by large-scale private equity inflows and increased investment in select manufacturing sectors. Notably, over 90% of Seoul’s FDI is concentrated in service industries, with strong performance in finance, insurance, fintech, and content-related sectors.
How Global Cities Attract FDI: A Comparative Perspective
Leading global cities have adopted tailored investment attraction strategies that leverage their unique industrial strengths and geographic advantages:
Across all cities, a common theme emerges: FDI strategies are deeply integrated with national and municipal industrial policies. Investment promotion efforts increasingly emphasize R&D investment and the attraction of global innovation talent.
Seoul’s Eight Strategic Industries
To enhance its competitiveness as a global investment destination, Seoul is actively fostering the following eight strategic industries:
Through focused development in these sectors, Seoul aims to strengthen its attractiveness to foreign investors and global startups by expanding R&D, building strategic clusters, and creating a future-ready business environment.
To access the full report (in Korean) visit here: 상세화면 | 전체 | 연구보고서 | 연구 | 서울연구원
To access the overview and main observations from the report (in English) visit here: Detail page | ALL | Reports | 서울연구원
To learn more about the HYESUNG FDI Platform and activities, visit here: HYESUNG FDI Platform