Korea has a well-established system for foreign direct investment (FDI) and provides various incentives to induce investment.
Since adopting the Foreign Investment Promotion Act (FIPA) in 1998, the Korean government has significantly deregulated and opened up the country’s investment market to foreign investors, launching a wide range of programs and efforts to attract foreign direct investment. In the early days, much of the policy focused on expanding the absolute quantity of capital from overseas by providing incentives proportional to the amount of investment.
Over time, however, the Korean foreign investment policy has gradually evolved toward qualitative growth, particularly with respect to high-value-added industries that can enhance the global competitiveness and potential of the Korean economy and create more jobs. Korean policymakers are striving to ultimately make Korea one of the top 10 destinations of foreign investment in the world.