South Korean companies’ overseas direct investment soared 18.7 percent on-year to $10.98 billion in the first quarter of this year as firms beefed up their operations abroad, the government said Wednesday.

The total is the fifth-largest quarterly overseas direct investment since such data tracking began in 1980, the Ministry of Strategy and Finance said. A record $18.09 billion was recorded in the second quarter of last year.

“There has generally been a steady rise in overseas direct investment in recent years as companies take steps to diversify and expand into new markets,” the ministry said.

Manufacturers’ overseas investment soared 61.1 percent on-year to $2.58 billion in the January-March period, with investment by financial firms skyrocketing more than eight-fold to $2.66 billion.

Investment in overseas real estate and rental businesses jumped 357 percent to $990 million.

The latest report, however, showed investment in mining and natural resources development plunging 38.4 percent on-year to $3.30 billion.

By region, direct investment in China jumped 166.3 percent on-year to $1.48 billion, with sharp gains being tallied for the Philippines and the Netherlands.

Investments in the United States and Australia contracted 15.3 percent and 55.9 percent, although by total amount, these two countries still attracted the most investments. Investment in the U.S. reached $1.68 billion.

The ministry said that while global financial uncertainties could affect outbound investment, South Korean companies are likely to increase their overseas spending as they try to take steps to build up manufacturing presence and take part in resource development projects. (Yonhap News)