Despite the recent global financial crisis, outward foreign direct investments (OFDI) of Korean enterprises have recorded gradual increases, while other multi-national companies were less than enthusiastic concerning their OFDI. However, OFDI also gives rise to concerns of contracting domestic investment out to other countries as well as negative impact on domestic employment and exports. Therefore, review of cases from other countries as to how OFDI influences domestic economy is both important and necessary.This study focuses on the effects of OFDI on exports in the case of Germany. Existing studies on German OFDI are few and far between, at least compared to the numerous studies on the US and Japan. In Korea, as elsewhere, only few studies on German OFDI have been done. Yet, as it was found that Germany exhibits similarities to Korea in economic structure, this study has chosen Germany as the subject of its analysis. Such similarities are as follows: Germany's strength is in the manufacturing industry rather than its services sector, and exports form the mainstay of its economic growth. Moreover, Germany, who is a member of the European Union (EU), is exploiting the economic integration system within the EU for their OFDI and foreign trade. Likewise, for the Korean economy, also in the process of promoting East Asian economic integration such as the Korea-ASEAN FTA, studying Germany's case may help Korea anticipate potential implications. This study applies an integrated methodology, combining literature survey, statistical analysis, and empirical analysis of OFDI and trade data in the German manufacturing sector. It was observed that German enterprises have augmented their OFDI to new member economies (NMEs) that joined the EU after 2004. International production/distribution system established in these areas brought about international division of labour with the NMEs, ultimately increasing German intermediate goods exports. As a result, incremented off-shoring derived from OFDI positively influenced the competitiveness of the German companies, decreased the commodity price, and enhanced trade. The empirical analysis revealed that German OFDI contributed significantly to its exports. Furthermore, it was discovered that sales of the subsidiary company abroad and the export of the parent company at home complement each other.As we can see in the German case, overseas expansion of Korean enterprises can lead to increased exports as well as make long-term contributions to the Korean economy and employment in Korea. Therefore, to improve corporate competitiveness of Korean companies and also promote domestic investment and employment, it is necessary to support aggressive efforts to attract foreign direct investment and to maintain a positive view on OFDI of the Korean companies.