A NEW government initiative launched with the personal backing of President Kim Young-sam to head off a dramatic slump in overseas investment has been slammed as ''too little, too late'' by foreign analysts.
Mr Kim has become the first chief executive to oversee a major change in the foreign investment laws. Earlier this week, he presided at a cabinet meeting in which plans to substantially improve the investment climate were announced.
Panicked by the loss of competitiveness of many of its main exports, despite temporary succour because of the yen appreciation, the new government is desperate to upgrade its technology through overseas investment.
With many foreign companies - particularly Japanese and American - leaving for richer pastures in recent years because of spiralling costs, South Korea has become a graveyard for joint ventures since the 1988 Olympics.
Several foreign companies such as Proctor & Gamble, Unilever, Price Waterhouse and United Distillers are going through complicated divorce proceedings.
According to the Ministry of Finance, South Korea attracted only about US$800 million in new foreign investment in 1990, far behind Singapore's $4.8 billion, the Association of Southeast Asian Nations' combined $8.6 billion, China's $3.5 billion and Taiwan's $1.3 billion.