September 12, 2018 13:23
Korea ranks at the very bottom among the 36 members of the OECD when it comes to attracting foreign direct investment. One reason may be that it has tougher restrictions on FDI than other member nations.
According to a report by the Korea International Trade Association on Tuesday, Korea ranked 20th in the world in terms of FDI last year with US$17 billion. But based on an index calculated by KITA reflecting the size of a country's economy, FDI stood at 0.37 on average between 2015 to 2017 or 35th in the OECD. Only Japan attracted even less proportional investment with 0.11.
Korea's FDI track record was far lower than the average of 1.3 among advanced countries and the EU's 1.1.
"Korea has forged free trade agreements with 52 countries and is viewed as an attractive investment destination among foreign exporters. But high regulatory barriers pose obstacles to attracting foreign investments," the report said.
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