NEW SOUTHERN POLICY AND FOREIGN DIRECT INVESTMENT TREND FROM REPUBLIC OF KOREA TO ASEAN COUNTRIES

Abstract

In 2017, South Korea announced the New Southern Policy emphasizing the so-called “3P community”, which stands for a community of People, Peace, and Prosperity, toward its goal to the same level that South Korea maintains with the four major powers (the United States, China, Japan and Russia). ASEAN is a central focus of the New Southern Policy and a significant economic partner of South Korea. As a result, South Korea's Foreign Direct Investment (FDI) into ASEAN has rapidly increased in the early years of the 21st century, with ASEAN being South Korea's second largest investment destination and South Korea ranking as the sixth largest source of FDI for ASEAN. This article will focus on studying an overview of South Korea's New Southern Policy and the trends of South Korean FDI (particularly since 2017) into ASEAN countries. To clarify the research problem, the article has used various research methods including historical, synthesis, statistical, and data analysis methods. The results of the research show that South Korea's New Southern Policy which is a significant diplomatic initiative aimed at elevating South Korea's strategic relations with ASEAN and India, has had positive impacts on ASEAN-South Korea relations, particularly in the area of foreign direct investment. The article also emphasizes the positive prospects for South Korean direct investment trends to the ASEAN region both currently and in the future.