Since the foreign currency crisis in 1997, Korea has undertaken major reform policies with specific emphasis on foreign direct investment. As a result, the inflow of foreign direct investment has surged and still is on an increasing trend following the onset of year 2000. However, considering Korea`s general economic scale, the degree of foreign direct investment in Korea is still estimated at a low level. Therefore, we must have an increase in the flow of foreign direct investment to advance the Korean economy to the level of developed countries. We must also make efforts to link Korean companies with leading international companies. It is impractical thinking to regard the relationship between foreign direct investment and the Korean economy as a zero-sum game. It should rather be considered a win-win game where both parties can gain benefits through strategical alliance and cooperation. In this regard, we must improve policies, such as trade, finance, and intellectual property policies, that promote the inflow of foreign direct investment. Furthermore, we must examine the current system and the customs which affect the business environments and to make them more attractive to foreign investors. Also, it is important to show the determined will of the Korean government to pursue these policies within and outside Korea. Lastly, it is necessary that Korean companies, Korean government and all Koreans have a new and timely understanding of the open economy in a rapidly globalizing world.