] Korea had a dismal ranking of 23 among OECD member countries in terms of foreign direct investment inflows as a percentage of gross domestic product in 2016, according to a local think tank on Oct. 16.
In its latest report, which analyzed FDI data published by UNCTAD, the Korea Economic Research Institute noted that the ratio was 0.8 percent, much below many of the 35 OECD member countries. Globally, the country had a rank of 152.
Though there was a slight increase in ranking from the previous year’s 29, the report notes that the nation has seen a steady decline since the 2000s.
Korea’s GDP ranking has remained in the 10-14 range since 2000, while FDI continues to be sluggish. Red tape and tough business environment for foreign investors have been cited by the report for this lackluster performance.
As per the analysis, Luxembourg topped the OECD list with an FDI/GDP ratio of 46.1 percent, followed by Netherlands (12 percent), UK (9.8 percent), Ireland (7.6 percent) and Belgium (7.1 percent). Except for the UK, all these countries have a lower GDP than Korea.
“This year, it is very likely that the nuclear crisis on the Korean Peninsula could further affect FDI inflows. In order to promote FDI and increase the number of jobs, efforts are being made to make more effective regulatory reforms and competitive taxation,” the KERI report noted.
By Alex Lee (firstname.lastname@example.org