author : DoHoon Kim (Industrial Cooperation and Globalization Division)

As Korea has pursued so-called outward-oriented economic policies, people easily admit the importance of trade and foreign investment. However, there is still a mercantilist approach among government officials and the general public. They feel that doing something to increase exportation is a good thing and limiting importation up to ? necessary level?is also a policy that should be respected.
There has been also a continuous trend of market opening or globalization as Korea has actively participated in international organizations such as WTO, OECD, APEC etc. When the notorious ?mport diversification system?which had been discriminating Japanese products was abolished in 1999, the Korean market could be called a ?ompletely liberalized market? at least at the border regulation level.
Also, since the Korean economy was hit harshly by the financial crisis in 1997 and suffered from a shortage of foreign exchange, the Korean government has issued policy packages for attracting more foreign direct investment. But there still remains a patriotic preference of domestic companies to foreign ones...