ABSTRACT
The principal aim of this book is to analyse trends in inward foreign direct investment (IFDI) in the Republic of Korea1 over the past four decades, tracing the development of Korean IFDI policy from one of restriction and control to one of encouragement and promotion. Specifically, the book focuses on the challenges inherent in reforming the ‘software’ of IFDI promotion (sociocultural issues, mindsets and perceptions) as opposed to changing its ‘hardware’ (systems, laws and regulations). The history of inward investment in Korea has been characterized by tight control and regulation by the state, a slowly growing awareness of the importance of IFDI and the advantages that it can bring, and a gradual shift in policy in the late 1980s and early 1990s to allow foreign companies greater access to the domestic market. The 1997 financial crisis brought into sharp relief the need for higher levels of inward investment in Korea and resulted in sweeping reforms of investment promotion policies and institutions.
