Status and Facilitation of Foreign Direct Investment into Korea

Abstract

Foreign direct investment is an effective way for Korea to overcome foreign exchange crisis and strengthen Korea economy by smooth flow of international capital. Since the implementation of the reform issues in South Korea was poor, coupled with rigid factor markets, government regulation and other barriers, as well as the lack of investor relations management system, make foreign direct investment stagnant. In order to accelerate the foreign investment, Korea should accelerate structural reforms, expansion of foreign investment liberalization, strengthen management, investor relations, giving the chance for a full use of international investment norms - Multilateral Agreement on Investment (MAI). It is also necessary to stimulate investment in the existing system to focus on increasing employment and regional development. However, in the implementation of the liberalization measures, it is necessary to deal with side effects through the establishment of competition policy and other related systems, and make thorough preparation