This paper studies the changes in Korea's foreign direct investment (FDI) policies and examines the recent evolution of forein investment in order to discuss the current hub-based development strategy. It argues that the focus on the needs of foreign companies and the promotion of exclusive economic zones may not contribute to Korea's much-needed broader reforms. After decades of hostility to multinationals, Korea may overreact to the successes of other Asian countries in attracting FDI.