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Changing Perceptions Of Inward Foreign Direct Investment In Post-Crisis Korea (1998-2006)

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Chapter Summary

This chapter analyses trends in inward foreign direct investment (IFDI) in post-crisis Korea, focusing on the problems facing the Korean government in its efforts to attract higher levels of inward FDI by changing both the nation’s ‘hardware’ and its ‘software’. It uses European investors in Korea as a case study; the major theme that emerged in the interviews carried out with executives was that there are significant mismatches between the speed and effectiveness of the reforms made to Korea’s IFDI ‘hardware’ and ‘software'. These reflect, to a great extent, the disparity between the speed at which Korea has emerged as a major player and key trading partner in the global economy, and the rate at which mindsets and attitudes have altered-in terms of Koreans’ attitudes towards foreign participation in their economy, their perceptions of the world and their place in it, and foreigners’ views of Korea.

Keywords: European investors; inward foreign direct investment (IFDI); post-crisis Korea



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