Foreign Direct Investment by Korean Firms: Profile, Theory, and Implementation

2002 ◽  
Vol 3 (1) ◽  
pp. 47-68
Author(s):  
Sang Hoon Nam ◽  
Tim Craig

This research investigates the current state of foreign direct investment by firms from South Korea. Korean FDI is found to be increasingly diverse in location and purpose; small and medium sized firms are investing primarily in Asia in search of cheap labor, while large firms are investing in major markets worldwide to secure market share and to acquire and develop technology. The applicability of Dunning’s eclectic theory to Korean FDI is discussed, and theoretical refinements concerning ownership advantages are suggested. Implementation challenges involve HRM, and vary according to whether the labor an investment requires is commodity-like or skilled.

2019 ◽  
Vol 27 (2) ◽  
pp. 366-374
Author(s):  
Han-Sol Lee

This study aims to measure the effectiveness of Russia’s Turn to the East Policy, addressed by the federal government in 2012, on the economic development of the underdeveloped Far Eastern regions, in terms of foreign direct investment (FDI) inflows data. To do so, this paper analyzed the results of the representative policy mechanisms - designed to promote the Far Eastern investments - of the Turn to the East Policy, comprised of the Eastern Economic Forum (EEC), Advanced Special Economic Zones (ASEZs), and Vladivostok Free Ports (VFPs), based on the secondary data from the governmental organizations. From the study, in spite of the previous contentions on those policy mechanisms amongst policymakers, we elucidate the incremental growing FDI - majorly contributed by the East Asian countries: China, Japan, and South Korea - propensity in the Far East. The three Eastern Asian countries promote investments in the Russian Far East for different eco-political purposes. And it further analyzed that for Russia, despite the remarkable magnitude of Chinese and Japanese FDI compared to South Korea, South Korea is still the most attractive partner, in terms of lack of threats: The Chinese expansionism, and the Kuril Island dispute with Japan.


2009 ◽  
Vol 9 (3) ◽  
pp. 399-432 ◽  
Author(s):  
Min Ye

When China embarked on economic reform in the late 1970s, its leaders aspired to learn from Japan's developmental policies that were restrictive of foreign capital. In the 1990s, China strove again to emulate Japan and South Korea in restricting foreign direct investment and promoting indigenous corporations. Despite these efforts, China's industrial catch-up was in fact led by FDI, in sharp contrast to the classic Japanese/Korean paradigm where FDI was strictly circumvented. Why was China unsuccessful in learning restrictive FDI policies? How did a new developmental path emerge in China? The answer lies in China's strong networks with diaspora communities. Through a diffusion mechanism, ties between local governments and diaspora capital helped initiate and catalyze China's FDI liberalization, despite the central efforts to learn from Japan and South Korea. Two critical reform episodes are examined: (1) the establishment of special economic zones and (2) the reform of state-owned enterprises.


Author(s):  
Abdoulaye Oury Bah ◽  
Xie Kefan ◽  
Oji-Okoro Izuchukwu

The globalization of the world economy has created enormous opportunities as well as promotion efforts to attract foreign direct investment (FDI). The goal of this study is to detect and analyze management strategy to attract foreign direct investment. We conduct a detailed literature review and identify different strategies for capital issues and benefits of FDI. There are several trends that drive FDI like availability of natural resources, cheap labor markets and low cost which must be considered in order to take appropriate measures to attract more investments. The main contribution of the study is that it builds a theoretical basis which is useful for managers, entrepreneurs and decision-makers to make rational decisions on the choice of location for investments.


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