Korea's New Globalization Strategy: Can Korea Become a Business Hub in Northeast Asia?

The Korean Government wishes to transform the nation into a Northeast Asian business hub. Following economic crisis, there are attempts to move the economy towards a new market-oriented paradigm of economic growth based on foreign direct investment (FDI) and market friendly transparent corporate governance, replacing the old model of the developmental state, involving intimate and opaque business-government relations, which has dominated Korean policy for at least three decades. This paper presents findings from 37 interviews conducted with senior executives of foreign companies and various chambers of commerce in Korea. The paper offers new insights into the critical and often invisible issues which need to be confronted and successfully resolved for the transformation of Korea. In providing a critical analysis, the paper examines alternative interpretations of the hub concept, key advantages offered by Korea, the main barriers to becoming a hub, competition from other locations and draws lessons for government policy makers.