OECD (Organization for Economic Cooperation and Development) has ensured its permanence in the overall global economical market by exponentially increasing FDI (foreign direct investments) both to inward and outward markets. The overall net outflows from the OECD during 1996-2006 have reached USD 1242 billion dollars. (OECD June 2007 Report) The amount of money being distributed among growing economies of scales has been increasing at a very sound pace irrespective of a continuous resistance from host countries around the world. Host countries tend to believe that FDI influx of funds violate national interests and seldom provide the key catalyst changes in revenue generation and improvement of social economical conditions. The United Nations has been actively monitoring the global perspective regarding FDI movement all over the globe. UN has evaluated countries that are enjoying exuberant financial growth due to pouring of FDI money into competitive markets and honing the quality of the workers as well as craftsmanship of the product and services. Countries that could not grow as per expectations either due to political unrest, sluggish government rules that hinder open market transitions, and overall rules that prohibit international dimensions to fully penetrate into local markets are all aspects that UN teams are deciphering and funneling into the OECD.
United States of America has been the predominant winner in both the inward and outward FDI segments. The country has placed approx 300 million dollars of its hard earned money into diversified portfolios. Resilience in economy, magnitude of purchasing power, succinct and conducive government policies that facilitate global financial models adduce America as the sole contender for the largest available financial resources from all over the world.
Though the United States has been playing a pivotal part over the last ten years ensuring its dominance and permanence in the market, except for the year 2005, decline due to tax laws, other players are working closely with UN reports and findings to hasten its momentum of internal governance and international awareness to comply and exceed international expectations. Mexico, Poland, Australia, Turkey, and Korea have been very successful in being noted as potential countries where FDI channels can be incorporated. These countries have boosted their overall internal performance to optimize its financial landscape. The social political hindrances have been to a large extent eliminated and an express mindset has been inculcated into the fabric of these countries to be extremely flexible to the FDI markets. Government regulations regarding merger and acquisitions have been re-evaluated to meet the needs and demands of the international markets. Korea has certainly performed immaculately to involve itself for the inward FDI channel. The government of Korea has changed its policies from a blocking to cooperation mode. This primal change has taken place after the 1997 financial fiasco that left Korea in a social and financial unrest. (Korea Economic Research Institute – “Foreign Direct Investment in Korea: A foreign Perspective)
Korea has come to fully appreciate the benefits of FDI markets and its impact on the long term goals of the economy. (http://eng.ifez.go.kr/guide/org/foreign-direct-investment.asp) Approx 99.8 percent of total business sectors within Korea alone are open to FDI. Labor market was completely reformed from a military and union state to a flexible tool that provides trust, loyalty, and acceptance to a multitude of foreign investors and organizations. Time consuming and stringent policies have all been dismantled to further foster FDI within the very grass roots of the economy. An environment of mergers and acquisitions are fully reciprocated and a large number of local businesses have been bought by foreign investors over the last decade. Also living conditions for foreigners and expatriates have been improved and a general awareness among the local masses to assist and accommodate foreign members in the community is now a working mechanism in place in all areas and cities of Korea.
These gargantuan steps have certainly reaped concrete results. The inward FDI has increased from US 2.8 billion in 1997 to US 9.3 billion in 1998 alone. According to a recent study by OECD (trends and recent developments in foreign direct investment) June 2007; Korea is now 12th on the list of the accumulative inflows to countries.
The volume of inward FDI is directly proportional to the complexity and diversity of the markets that is being targeted for improvement and expansion. Over the last 8 years alone, Korea has utilized its FDI account in a multitude of markets ranging from apparel industry to car manufacturing units. The labor force in Korea has become a multitasking unit for areas and features that had required drastic uplift. One of the benefits of FDI in Korea is the 51 percent stake of Ssang Motor Company being sold to SAIC in 2004. FDI shows improvements of talent, increase of labor force, optimization of processes and an overall international achievement that was not prevalent in national organizations. These are the benefits that FDI brings and Korea is certainly looking forward to implementing. If users would like to garner further information regarding investment of FDI in Korea, kindly do view
http://eng.ifez.go.kr/guide/org/foreign-direct-investment.asp .