The Foreign Investment Promotion Act was enacted in Korea in 1998 for the purpose of courting foreign direct investment,
after the 1997 Asian financial crisis swept the country. The Korean government also opened its market and liberalized
foreign direct investment as part of the effort. Recently, the Foreign Investment Promotion Act was amended in
order to improve the existing foreign investment system and promote foreign investment in the service sector. (Act No.
10232, promulgated on April 5, taken into force on Oct. 6). Foreign investment zone, which refers to the zone designated
exclusively for the purpose of leasing or transferring lands to foreign-invested companies, has been expanded to allow
foreign-invested companies in the high value-added service industries to move into the zone. The amended Act also
stipulates high value-added industries which are allowed to move into a foreign investment zone.