Foreign Direct Investment in Korea : The Role of the State

Published in 1998, through its examination of foreign investment policy, this book touches upon the difficulty of general economic policy reform in Korea. Some observers attribute Korea’s current economic problems to difficulties which have occurred in economic reform generally and in particular in the financial sector. This book will therefore be useful reading for those who wish to gain insight into Korea’s current difficulties.

Published in 1997, this book traces the history of foreign investment policy in South Korea from 1961 until the present. It shows how Korea adopted a highly successful interventionist strategy towards foreign direct investment channeling it into areas of the economy where it could achieve the most benefit for the country’s economic development. In recent years Korea has tried to adopt a more market driven approach. However, differences within various institutions within the public and private sector led to policy confusion and ineffectiveness in meeting policy goals. The conclusion reached is that moving from an interventionist strategy to a market orientated strategy is difficult in this policy area. The book breaks new ground because it shows that while the conventional wisdom is that a ''market economy'' approach is beneficial, moving from an interventionist policy to a market-orientated one is problematic and cannot be accomplished quickly.