ABSTRACT
Despite the best efforts of the Kim Dae-jung government in the immediate post-crisis period and notwithstanding the boom in inward investment in 1999 and 2000, IFDI levels were declining towards the end of President Kim’s fiveyear term of office, with notifications falling from a peak of US$15.5 billion in 1999 to US$9.1 billion by the end of 2002. The downturn in IFDI notifications came at a time when the Korean economy was showing signs of recovery as GDP and per capita GDP both returned to pre-crisis levels of US$546.9 billion dollars (at current prices) and US$11,499 respectively. There had also been a spectacular recovery in usable foreign exchange reserves, which had increased from US$8.8 billion dollars at the end of 1997 to US$121.4 billion by the end of 2002 (KOSIS 2007; Invest Korea 2007). While there had been concerns over the 12.7 per cent decline in exports in 2001 (to US$150.4 billion), export growth became positive once more in 2002, rising by 8 per cent to reach US$162.5 billion, the second highest level in Korea’s history25 (KITA 2006).
