KLRI : KOREA LEGISLATION RESEARCH INSTITUTE

Ⅰ. Backgrounds and Purposes

○The Foreign Investment Promotion Act (hereinafter referred to as the "Foreign Investment Act") was enacted in 1998 with the aim of contributing to the sound development of the national economy by supporting foreign investment and providing convenience to foreign investment.

○ According to the reason for the proposed amendment, the Foreign Investment Act is focused on the important role of the Korean economy and the positive ripple effect of investment. However, the three amendments to the Foreign Investment Act were proposed to seek supplementation due to follow-up management, workers' problems and economic impact.

○ As part of the 2022 data-based legislative evaluation series, this report focuses on Representative Kim Jung-ho’s proposal, Representative Lee Hak-young's proposal, and Representative Ryu Ho-Jung's proposal.

 

Ⅱ. Major Content 

○This study conducted a parallel legislative evaluation with the aim of evaluating three proposed bills (Representative Kim Jung-ho's proposal, Representative Lee Hak-young's proposal, and Representative Ryu Ho-jung's proposal) to supplement the legislative effectiveness of the current law from the perspective of responding to damage caused by foreign investment.

○ This study focused on the evaluation of the "Partial Amendment to the Foreign Investment Promotion Act" and was conducted by applying a parallel legislative evaluation method with focusing on legislative effectiveness and performance and problems of the current law in the application of the law.

○ This study conducted a legislative evaluation based on data. Various data collection and analysis were conducted to objectively evaluate the effectiveness of the amendment to the Foreign Investment Act and the feasibility of legislative purposes.

○ In this study, an expert survey was conducted to analyze the opinions of experts on the main contents of the amendment to the Foreign Investment Act. Through the survey, experts' opinions on the specific perception, legislative realization, or effectiveness of experts were collected and analyzed. An expert survey was conducted online and an analysis of 25 experts response was used.

○ The main issues of the amendment to the Foreign Investment Act were divided as follows, and legislative evaluation was conducted for each issue. It includes 'Amendments to follow-up management of cash support for foreign investment', 'Amendments to follow-up management of rent reduction system for state-owned and public property', 'Amendments to restrict foreign investment liberalization', and 'Amendments to follow-up  management when closing foreign investment companies'.

 

Ⅲ. Expected Effects 

○A Review on the effectiveness of legislation through legislative evaluation of the amendment to the Foreign Investment Act.

○Use this report as a basic data for legislative development by analyzing meaningful data related to amendment of the Foreign Investment Act and securing additional meaningful legislative evaluation data through surveys. This report can be used for reviewing related issues when revising the Foreign Investment Act in the future.

○ Contribute to the establishment of a legislative evaluation methodology for the same Act in the future by providing a legislative evaluation methodology according to the individuality and specific specificity of the Foreign Investment Act.