Factors in Placing South Korean Foreign Direct Investment in the Countries of the Commonwealth of Independent States

Abstract

Since the New North Policy was declared one of the 100 state affairs in 2017, the role of the Commonwealth of Independent States (CIS) countries in the future economic growth of South Korea (since the diversification of foreign partnerships is heavily skewed towards the United States and China) has recently become key. However, due to ineffective policies, South Korea's foreign direct investment (FDI) in the CIS countries remains insignificant. In addition, although economic cooperation between South Korea and CIS countries (especially Russia due to the New Eastern Policy) is becoming increasingly important, no previous studies have examined South Korean FDI in CIS countries. This study contributes by analyzing the factors of South Korean FDI placement in three CIS countries, namely Kazakhstan, Russia, and Uzbekistan, based on data for 2010-2022.