Topics: Investment, Economy, Economic system Pages: 4 (1267 words) Published: June 28, 2013
1. Introduction
This essay will focus on the case analysis of the political economy in South Korea and how it has influenced the foreign direct investment (FDI) in South Korea after the global financial crisis (GFC) in 2007. It will give a brief introduction of what the political economy is. And then a case study will be provided about the political system, the legal system and the economic system in South Korea and the interconnectedness of these three systems and their influence on the environment of FDI as time goes on. At last, a critical evaluation of the South Korean political economy will be made to reach a proper conclusion.

2. A brief introduction to the political economy
The political economy has become a more and more popular term in the world because of its importance to the development of economy. The term ‘political economy’ refers to the study of how society and history are shaped trough the development of economy and how the political systems interact the economy in return. The political economy emphasizes the understanding society and history through making extensive and intensive use of class analysis. It studies production, buying, and selling and their relationship with law, political policies, and government and national wealth. As a result, the political economy has become a heat issue for the experts to make related researches.

3. The political economy in South Korea and its influence on FDI in South Korea with related economic theories 1. The political background in South Korea and its influence on FDI Economic theories show that peaceful diplomatic relationships are sure to promote the economic cooperation between countries by providing the environment FDI needs (Pyo, 1993).

Since the independence from Japan’s colony, South Korea once experienced poor undeveloped economy and depended a lot on America’s aids. Korea has developed a unique culture for about 4,000 years’ isolation before 1882. It has been working hard to develop...
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