FDI and the Economic Status of Korea: The Hub Strategy in Perspective Frédérique Sachwald, in Confrontation and Innovation on the Korean Peninsula, Korea Economic Institute, 2003

This paper studies the changes in Korea's foreign direct investment (FDI) policies and examines the recent evolution of forein investment in order to discuss the current hub-based development strategy. It argues that the focus on the needs of foreign companies and the promotion of exclusive economic zones may not contribute to Korea's much-needed broader reforms. After decades of hostility to multinationals, Korea may overreact to the successes of other Asian countries in attracting FDI.