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Essay / Research Paper Abstract
This 3 page paper looks at the business environment in South Korea and considers why, despite good economic growth, the country is failing to gain any significant levels of FDI. The bibliography cites 2 sources.
Page Count:
2 pages (~225 words per page)
File: TS14_TEKoreaFDI.rtf
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Unformatted sample text from the term paper:
the factors that may attract investors. South Korea is noted as having a string economy; the government had made a forecast of 5% growth in 2010 and despite the claims
by commentators that this was a foolhardy projection the recent export data appears to support this prediction. There is some belief in the economy in the international markets as investors
from overseas have been buying stocks of South Korean companies, with many companies from the areas building a string global presence, as seen with both Hyundai and Samsung. The bond
market has also proven attractive as the country is seeking to push its debt into the major league. However, despite this there appears to be difficulty in attracting FDI. This
can be evidenced, in 2008 South Korea only managed to gain FDI of $11.7 billion, by comparison Sweden gained $44 billion and Spain gained $66 billion. In addition to this
the plans to build a Universal Studios Theme park has also found it hard to obtain backing, in order for the project to go ahead investment was eventually gained from
inside South Korea. The problems appear to be the condition inside the country, the regulations are not clear, the reform in terms of unions is being fudged, and there
is the domination of much of the business environment in the country by opaque clans. Lee Myung-bak, the South Korean president has taken on the Presidency of the G20, this
has included moves such as making serous commitments to help Haiti in order to show that the country it taking its responsibility in the international arena, but the issues concerning
reform and uncertainty in business are holding back the investment. When looking at the way that FDI decisions are made there are many influences. One of these is the
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