The purpose of this paper is to study the motivations of South Korean foreign direct investment. Using recent, detailed data on a selective sample of South Korean multinational firms, I examined the export and import behavior of the affiliates abroad of South Korean multinational corporations. In doing so, I investigated, on the one hand, to what extent multinational activity is consistent with the factor proportions theory, i.e., to what extent multinational activity is related to cheap factor supplies. (The rest is omitted.)

I. Introduction

II. Data

III. The Pattern of Outward FDI: An Initial Look

IV. Comparing Affiliate Production for Export and Local Sale
1. Affiliate Exports and Local Sales
2. The Export versus Local Sales Decision

V. Conclusion