Seoul - South Korea enjoyed growth in foreign direct investment for the first time in four years, reported the country's economics ministry, citing programs to improve business conditions and attract foreign workers.

Compared to the previous year, South Korea saw 11.3 per cent growth, for a total of 11.7 billion dollars. Despite the global financial crisis, the government says it hopes to see investment of 12.5 billion dollars for 2009.

The ministry attributed some of the growth to heightened efforts by both the central and provincial governments to attract investment, including a three-year program designed to make it easier to conduct business in South Korea and to make the country more attractive to foreigners.

The government also offered special tax packages in five special investment zones and offered financial support to foreign firms that hired large numbers of local workers.

With 54.1 per cent of investment, European Union firms were the biggest contributor to the South Korean economy. They were followed by companies from Japan, with US companies taking third place.

South Korean President Lee Myung Bak has said he wants South Korean economic growth to average 7 per cent over the next 10 years. However, analysts only project 2 per cent growth for 2009, following 3.6 per cent growth in 2008. Others have predicted the country could slide into recession. (dpa)