THE ROLE OF FREE ECONOMIC ZONES (FEZS) IN ATTRACTING FOREIGN DIRECT INVESTMENT (FDI): THE CASE OF SOUTH KOREA

This paper explores the role of Free Economic Zones (FEZs) in attracting Foreign Direct Investment (FDI) in South Korea. FEZs are designated areas that offer preferential policies and incentives to foreign investors, such as tax preferences, regulatory support, and advanced infrastructure. This study investigates the effectiveness of these zones in enhancing FDI inflows and their impact on the South Korean economy. Through an analysis of policy frameworks, economic data, and specific case studies, FEZs have contributed to increased foreign investments, job creation, export growth, and regional development were studied in this paper. Despite these successes, the study also highlights challenges such as competition from other countries, and sustainability concerns. The findings suggest that while FEZs have been instrumental in driving economic growth, further policy enhancements are necessary to sustain their attractiveness and effectiveness in a competitive global environment.