Earticle

Due to the rapid growth of China, Far-east Asia is one of the most actively changing economic regions. To actively respond on this trend, many global companies are searching for the regional headquarter for this region. Since these inbound foreign direct investment (FDI) is the key not only for the boost of the economic growth, but for the increased competitiveness for the host country, Korean government has been promoted these inbound FDI. Korea took paradigm of the selective concentration on the special region of "Economic Free Zone" such as Inchon, Pusan and Kwangyang with highly inducive incentives. The study analyzes the effectiveness of these incentives and suggests the paradigm shift on the incentives. Based on the theoretical as well as the comparative analysis on the benchmarking of the advanced countries in FDI, it concludes the importance on the systematic productivity for the incentives in terms of structural, functional and procedural innovation on the incentive system.