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Issues on FDI and international trade : A case of Korea

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Frame of Image tive effects of FDI on the hosting country, developed countries as well as developing countries try to lure FDI and establish various kinds of policies to maximize its positive effects. After receiving its first inflows of FDI in 1962, Korea has been on a consistent policy track to liberalize FDI, although Korea’s FDI policy has continuously changed. Behind the FDI liberalization policy, there is a clear premise that liberalizaion is the best way to utilize FDI as a force for economic development. FDI inflows to Korea have been recognized as an important factor in enhancing the competitiveness of Korean companies. Especially, the increase in FDI after the Asian financial crisis contributed to the recovery of the Korean economy. Examining Korea’s experience in FDI can provide insight into the relationship between FDI and economic development as well as a good perspective for future discussions at the WTO. II. Recent FDI Trends in Korea
1. The FDI Policy in Korea FDI Policy Before the Financial Crisis FDI in Korea has been permitted since 1962, with the first investment being worth US$ 579,000 from the U.S corporation, Chemtax. However, from the 1960s to the early 1980s, the Korean government continued to pursue development strategies that depended upon foreign borrowings rather than on FDI. This was, first, because the Korean government feared that foreign firms would dominate the economy, and second,
due to its preference for foreign borrowings over other forms of foreign res


Full Text
Title Issues on FDI and international trade
Similar Titles
Sub Title

A case of Korea

Material Type Reports
Author(English)

Lee, Seong-bong

Publisher

[Seoul] : Korea Development Institute

Date 2003
Event

Workshop on WTO Investment Rules

Pages 12
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Direct Investment
Holding KDI; KDI School
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