1st Edition
South Korea and Foreign Direct Investment Policy Dynamics and the Aftercare Ombudsman
This book examines Korea’s foreign direct investment policy dynamics and points out the importance of mutual synergy between multinational corporations and their host countries in a win-win framework and the increasing importance of this in a post-pandemic world.
A multitude of case studies shows many of the business difficulties foreign investors in Korea face, and how the Foreign Investment Ombudsman has intervened to resolve each one. The book addresses Korea’s challenges and efforts to become a truly preferred FDI destination through active FDI inducement and effective aftercare services. Investigating the ambivalent attitude toward foreign direct investors and foreign migrants in an increasingly globalizing world, the author also analyses the issue of xenophobia. The book demonstrates empirically that appropriate and timely aftercare services can serve as not only a robust facilitator for cross-border investment but also a preventer of undesirable friction between foreign investors and host economies, before disputes become serious legal matters. Finally, it draws policy implications towards a liberal investment order post COVID-19.
The book will be of interest to policymakers, investors, and researchers on Korean and East Asian economic studies, FDI promotion, and deregulation for better business environment.
Chapter 1. Introduction and Overview; Chapter 2. Korea’s Outward-looking Development Strategies, Dynamics of FDI Policy and Emerging Challenges Toward a Regional Business Hub; Chapter 3. Case Stories of Grievance Resolutions for MNEs in Korea; Chapter 4. Facilitating FDI with Aftercare Ombudsman System and Policy Implications; Conclusion and epilogue
Biography
Choong Yong Ahn is a distinguished professor at the Graduate School of International Studies at Chung-Ang University in South Korea. He served as President of the Korea Institute for International Economic Policy, Chair of the APEC Economic Committee, Foreign Investment Ombudsman, Co-Chair of the Presidential Regulatory Reform Committee, and Chairman of the Korea Commission of Corporate Partnership and has written extensively on East Asian economic integration and comparative development models.
"Choong Yong Ahn brilliantly sets out how South Korea transformed its economy to one of the world’s most welcoming to foreign direct investment. The World Bank ranks South Korea as number four (ahead of the United States) for ease of doing business. In particular, South Korea’s foreign investment aftercare system needs to be widely shared for cross-border investment liberalization and facilitation. This is a ‘must read’ for government officials, business, and academics worldwide." -- Carla A. Hills, Former U.S. Trade Representative and Chair and CEO of Hills & Company
"The author, a renowned senior economist, lucidly documents South Korea’s entire FDI policy dynamics and institutions from a restrictive to a liberalized regime, most notably the highly effective foreign investment aftercare Ombudsman system. … I strongly recommend this to the international economic policymakers in emerging economies and students of economic development." -- Dr. Il SaKong, Chairman Emeritus, Institute for Global Economics and former Minister of Finance, South Korea
"Choong Yong Ahn uses his considerable experience and insights to cover often neglected aspects of FDI. Although late to FDI, Korea’s innovative use of an Aftercare Ombudsman allowed it to deal with a wide range of vexing issues. Ahn was at the center of this, and his book offers a fascinating birds-eye perspective. … An important read." -- Danny M. Leipziger, Professor of International Business, George Washington University and former Vice President of the World Bank
"Countries around the world seek to attract inwards foreign direct investment (FDI) since such investment typically creates good, high-paying jobs, brings in foreign knowhow, and facilitates access to foreign export markets. While a great deal has been written on how countries can attract FDI, much less—indeed nothing—has been written on how countries can provide ‘aftercare’ for the FDI once it is in place. This book, which (inter alia) describes Korea’s Aftercare Ombudsman System, is rich in examples and explanations of how and why an FDI Ombudsman really should be part of every nation’s FDI package. I heartedly recommend this book to all scholars as well as government and corporate economists dealing with FDI." -- Richard Baldwin, Professor of International Economics at the Graduate Institute, Geneva and Founder & Editor-in-Chief of VoxEU.org
"This book based on Korean experiences presents innovatively empirical axioms for why business grievances for foreign investors in host economies continue to arise and argues for the necessity of an aftercare system to draw reinvestment from foreign investors already in place. The author eloquently suggests that a successful aftercare service should be connected with government deregulation efforts for a better business climate and pins this down explicitly in the investment chapter of free trade deals or international investment agreements to mitigate rising investor-state disputes…. Indispensable." -- Jang Hee Yoo, Member of Korea National Academy of Sciences and Professor Emeritus of Economics at Ewha Woman’s University
"Professor Choong Yong Ahn is really an unsung hero of the Korean economy. Much has been written and said about the miracle of the Korean economy, but Professor Ahn was on the front lines constantly battling for reform and liberalization of a very tight regulatory system that was choking foreign investment opportunities in Korea. His efforts as the Foreign Investment Ombudsman had a remarkable effect on growth in Korea. The aftercare system can be helpful for any country to make opportunities available to foreign investors." -- Jeffrey Jones, International Lawyer at Kim & Chang and Board Chairman of American Chamber of Commerce in Korea
"In our first Investment Advisory Series publication back in 2007, UNCTAD recognized the Foreign Investment Ombudsman (FIO) system of Republic of Korea as a best practice. That same year, FIO received a joint UNCTAD-WAIPA Award. This book provides an excellent account of the history and contributions made by the aftercare Ombudsman to improving investment climate in Korea. The Korean experience is a highly valuable reference to FDI seeking economies and effective measures for cross-border investment facilitation." -- James X. Zhan, Director, Investment and Enterprise, and Lead, World Investment Report at UNCTAD
"Ahn Choong-yong, a distinguished professor at Chung-Ang University’s Graduate School of International Studies, showcases a culmination ofseveral decades of expertise in foreign direct investment (FDI) in his recently published book. At 82, Ahn discovers that his career, far from becoming a relic of the past, serves as a wellspring of inspiration for Korea's future-orientedgoals in both the domestic and international arenas. Readers can delve into the insights offered by the 292-page book, titled "South Koreaand Foreign Direct Investment: Policy Dynamics and the Aftercare Ombudsman," to gain a profound understanding of the subject." -- The Korea Times. 2023-12-07
