“Korea has become less friendly to foreign investment in the past five years as it recovered from the financial crisis,” he said.
He explained that Korea’s development model is based on developing indigenous firms to conquer foreign markets, very similar to the Japanese model.
“The opening to FDI during and after the crisis was out of necessity. Korea was down and needed the money,” he added. “When Korea recovered, it changed back. Korean people may disagree but this view is widely shared in the international community.”
He pointed out that when the property bubble deflates, Korea may become friendly to foreign investment again but that may prove temporary again.
“Korea may never become a truly open economy. An open economy is a matter of choice,” he said.
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