The premise of this dissertation starts from the necessity of evaluating the effectiveness of foreign investment policies, not only to induce more investment but also to bring advancement to the economy. Thus, this research analyzes what policies and measures were effective, based on the outcome of a survey on foreign-invested companies in Korea. The results of the analysis are as follows: ① The most important factors in deciding to invest in Korea are the size of the domestic market and its growth potential. ② Most investors acquire investment information from the government, local governments, KOTRA and other related organizations or companies. ③ The difficulties that foreign investors faced in terms of the business environment and living conditions are about securing skilled human resources, labor relations, financing, and government regulations. Among the living conditions to be improved, the education of foreigners' children is the most critical issue. Furthermore, the satisfaction level of foreign investors as a proxy variable of investment decisions was regressed in relation to factors influencing investment decisions. The results show that foreigners' satisfaction is most closely linked with the expected profitability, followed by support received from investment-related organizations. Investment incentives such as tax reduction or industrial land support have relatively lesser correlations with the satisfaction they felt. Based on the results of the empirical analysis, this study suggests several policy alternatives for enhancing expected profitability and encouraging investment-related organization's activities as well as maintenance and enlargement of the existing investment incentive policies.

The premise of this dissertation starts from the necessity of evaluating the effectiveness of foreign investment policies, not only to induce more investment but also to bring advancement to the economy. Thus, this research analyzes what policies and measures were effective, based on the outcome of a survey on foreign-invested companies in Korea. The results of the analysis are as follows: ① The most important factors in deciding to invest in Korea are the size of the domestic market and its growth potential. ② Most investors acquire investment information from the government, local governments, KOTRA and other related organizations or companies. ③ The difficulties that foreign investors faced in terms of the business environment and living conditions are about securing skilled human resources, labor relations, financing, and government regulations. Among the living conditions to be improved, the education of foreigners' children is the most critical issue. Furthermore, the satisfaction level of foreign investors as a proxy variable of investment decisions was regressed in relation to factors influencing investment decisions. The results show that foreigners' satisfaction is most closely linked with the expected profitability, followed by support received from investment-related organizations. Investment incentives such as tax reduction or industrial land support have relatively lesser correlations with the satisfaction they felt. Based on the results of the empirical analysis, this study suggests several policy alternatives for enhancing expected profitability and encouraging investment-related organization's activities as well as maintenance and enlargement of the existing investment incentive policies.

Foreign Direct Investment Policy, Investment Decision