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There is a growing tide of interest in the rise of the ‘BRICs’ which means Brazil, Russia, India and China. The purpose of this study is to assess the direction and perspectives on the Korean foreign direct investment (FDI) in India which is one of the ‘BRICs’. The earliest recorded Korean foreign direct investment to India began in 1983, when a small Korean enterprise, DongIn Stoneworks Industries Company, set up a stoneworks importing firm in Madras India. The Korean equity contribution was only U$119 thousands, and the entire operation was tiny. The pace of Korean FDI to India quickened in the 1990s, with a peak occurring in 1996-1998 and a relative slowdown thereafter until 2004. Korean firms' FDI to India amounted to U$574 millions (outstanding invested) at the end of 2004 : 82% in manufacturing while the remaining 18% was in trade & retail, real estate & services industries etc.. Within manufacturing, Korea's FDI concentrates in motors & equipment, petroleum & chemicals, electronics & telecommunication equipment etc.. The motivations of Korean firms' FDI in India are as follows. First, to open up Indian market by directly investing there. Second, lack of technical and skilled labor force with low labor costs in Korea. Third, to facilitate the export of products to India and another countries. Fourth, to further exploit the advantage of the technical and production knowhow of the Korean parent firm etc.. The main sources of competitive advantages of Korean firms in India are as follows. First, more advanced technologies and better management skill. Second, longer experience in production and operation. Third, appropriate technology suited to India. Fourth, scanning ability of business opportunities by the top manager. Fifth, personal devotion by the dispatched Koreans in Indian subsidiary etc.. The firm undertaking FDI in the beginning is often a Schumpeterian innovator, and was accumulating managerial resources to compete successfully over indigenous firms and other foreign firms in India. But Korean large firms investing in India went abroad with considerable advantages. Hereafter, it is necessary to foster the global manager as a regional expert. Also, Korean firms in India must endeavor to establish a mechanism which can create core competence and information collection capability. Lastly, Korean firms in India play an important role in trade promotion and decrease trade conflicts between Korea and India.