Korea Struggling to Attract Foreign Investors

According to a recent Korea Herald article, "Korea's foreign direct investment last year fell 29.8 percent to $6.46 billion, the fourth consecutive year of decline."

The nation's economic leaders created a new Invest KOREA at the Korea Investment-Trade Promotion Agency, which they hope will help attract more investment. A wide range of incentives will be offered to foreign investors, including cash grants and project managers who will oversee the investment processes to provide better support.

Here is the focus of the new incentives. Grants are to be allotted among firms in industrial service areas investing $10 million or more, and research and development companies investing a minimum $5 million.

Why the slump in DFI in Korea? Persistent internal problems, including the North Korean nuclear crisis, hostile labor relations and sluggish domestic consumption, have prompted some economic experts to forecast continued trouble in attracting foreign investment. Others say the main obstacle is the global economy, including much greater competition from China and India.

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