The Political Economy of Foreign Direct Investment in Korea: Evolution, Dynamics, and Contradictions

One of the most spectacular phenomena in the South Korean political economy has been the remarkable escalation of international capital investment, particularly inward foreign direct investment (FDI). This book provides an in-depth look at the evolution of FDI in Korea, from the late 1990s to the present day. Charting Korea’s transition from state-led capitalism to a more liberalized market, this book assesses the complex interplay between government policy, foreign capital inflows, and multinational corporations (MNCs). It analyzes the key economic policies of the past as well as more recent measures by the Moon Jae-in and Yoon Suk Yeol administrations. The book then conducts an analysis of the socio-economic, cultural, and political dynamics that shape strategies of MNCs today. The book draws on 36 interviews with CEOs of foreign companies operating in Korea to seek their insights into the realities of doing business in Korea. It closes by highlighting the current challenges Korea faces today in integrating into the international economy and suggests solutions for sustaining its economic growth. This book will appeal to scholars of political economy, Korean studies, and economic development. It will also interest business leaders and policymakers seeking a deeper understanding of insights into Korea’s economic climate.