Multinationals and public policy in Korea

It is now accepted that multinational enterprises (MNEs) are the key institutions driving globalization. The world's 500 largest MNEs account for about 90 per cent of the world's stock of foreign direct investment (FDI). In this paper, we explore the Korean data on both inward and outward FDI (1990-2004), and suggest firm-level explanations of foreign investment decisions of MNEs. The main findings are twofold: (1) both inward and outward FDI of Korea is regional in nature and (2) three main shifts in the MNE-host government relationships have contributed to the symmetry of FDI in Korea.