1. 1. First Secretary, Park Jong hark Embassy of the Republic of Korea

3. 1. FDI Status

4. History of FDI Policy

5. *Source: Ministry of Trade, Industry & Energy (2014) Unit: USD Million 19,003 11,517  FDI pledged to Korea is on the rise

6. 16,000+ 1,678 (2014) (1990)  Korea: Home to more than 16,000 foreign-invested companies

7. *Source: KOTRA (2014)  Economic contributions of foreign-invested companies R&D 21.3% 10.3% 20.8% 6.6% Sales Employment Export

8. (1) Excellent Business Environment (2) FTA Network (3) Government Support

9. (1) Excellent business environment

10. 1,000 km 2,000 km 3,000 km Korea Zone * Source: Chosun IIbo, Februry 28, 2014 4-hour flight 390 million people 147 cities

11. Petrochemical: No. 5 Shipbuilding: No. 1 Semiconductor: No. 1 Auto: No. 5 General machinery: No. 9 Flat panel display: No. 1 Steel: No. 6 Mobile phone: No. 1 Major industries  Korea’s worldwide leading industries

12. 65 % 60 % 57 % 56 % 48 % * Source: Education at a Glance 2013 Korea J apan Canada Russia I reland OECD Top-5 College Graduation Rate (25-34 Age group) OECD PISA Results (2012) (Program for International Student Assessment ) MathematicsReadingScience CountryAvg.RankCountryAvg.RankCountryAvg.Rank Korea 5541 Japan 5381~2 Japan 5471~3 Japan 5362~3 Korea 5361~2 Finland 5451~3 Switzerland 5312~3 Finland 5243~5 Estonia 5412~4 Holland 5233~7 Ireland 5233~6 Korea 5382~4 Estonia 5214~8 Canada 5233~6 Poland 5265~9 Finland 5194~9 Poland 5184~9 Canada 5255~8 Canada 5185~9 Estonia 5166~9 Germany 5245~10 Poland 5184~10 New Zeal. 5127~13 Holland 5225~11  A highly educated and skilled workforce

13. * Source: OECD Main Science and Technology Indicators Korea Israel Finland Sweden Japan Denmark Germany Austria USA Slovenia 4.03% 3.93% 3.55% 3.41% 3.35% 2.98% 2.92% 2.84% 2.79% 2.63% (% Of GDP) Korea, the world’s most innovative country R&D Intensity Ranking (2014)

14. (2) FTA Network

15. USA Canada Colombia Peru Chile Australia India EU EFTA Turkey In Effect or ConcludedUnder Negotiation ASEAN Singapore Japan Vietnam Indonesia New Zealand China - Only Asian economy to have signed FTAs with the USA, EU & China - FTAs with 52 countries in total (73.5% of global GDP)

17. (3) Government Support

18. TaxSupport Site Support CashGrant Corporate Tax reduction or exemption Local Tax reduction or exemption Exemption of Customs Duties, etc. Reduction or exemption of rent Support for building infrastructure. Cash grants for projects such as the construction of a new factory, etc.

20. Foreign Investment Committee Local Government

21. 3. Policy Direction

22. Attraction of key investment factors; capital, workforce and technologies Improve regulations in cosmetics, pharmaceutical, parts and materials

24. International logistics/shipping complex Customs systemExpand e-commerce infrastructure

25. Facilitate flows of goods, capital and workforce Attract foreign investments in the service sector Streamline procedures to develop and build factories in FEZs

26. 1.