Foreign capital investment may pose a problem for the South Korean economy in the future. Only a few short months ago, the South Korean government demonstrated its desire “for more domestic investment to balance overseas share ownership,” because many of South Korea’s largest companies are controlled by foreign investors. When heavy foreign investment is prevalent in any economy, there is a risk of capital flight or economic dictation by foreign nations. Foreign investment has its pros and cons, “While that influx of capital helps local companies to finance their operations and to create jobs, it also contributes to anxiety about the country’s control of its economic destiny.” (Salmon, The International Herald Tribune) Unfortunately, the benefits to the South Korean economy are often overlooked as the citizens worry about the stability of the economic market. Capital flight was one of the most pervasive causes of the economic crisis, but now foreign investment is helping to stabilize the economy and reinvigorate the South Korean market.
