As a nonprofit institution working in cooperation with the government and related organizations, the Office of the Foreign Investment Ombudsman (OIO) is setting out to address and resolve the difficulties experienced by foreign-invested companies in Korea and to create a more favorable overall investment environment, while upgrading the country's bureaucratic/administrative system in conformation with the global standards.

Recent organizational changes within the OIO have resulted in the creation of two separate divisions - the Investment Aftercare Team and the Investment Service Team. The Investment Aftercare Team is comprised of the OIO "Home Doctors" - private sector specialists in areas such as construction, finance, tax, labor, IT, accounting, law, logistics, etc. They are assigned to foreign-invested companies operating in Korea to provide personalized assistance in resolving a variety of management grievances by tackling bureaucratic red tape and cumbersome administrative procedures.

The Investment Service Team was created to undertake projects aimed at improving the overall foreign investment environment, with a particular focus on addressing the daily living inconveniences commonly experienced by foreign business executives and their families. Major activities include personalized settlement services for newly arriving foreign investors, seminars, cultural tours, annual publications, and foreign investor surveys aimed at enhancing Korea's standing as a friendly and comfortable location for doing business.

No other organization fulfills the same role as the OIO, as it is uniquely tailored to viewing problems from the perspective of a foreign investor.

The OIO was established pursuant to Article 15 of the landmark Foreign Investment Promotion Act (FIPA) of 1998 as a means to resolve the management difficulties experienced by foreign investors in Korea and to enhance the overall business climate.

By law, the Ombudsman system ensures prompt cooperation from relevant agencies. According to Article 21-3, Paragraph 3 of the Enforcement Decree of the Foreign Investment Promotion Act (FIPA), "The Ombudsman may request the relevant administrative agency or the foreign investment-related agency to cooperate for the purpose of solving problems experienced by foreign capital-invested companies and performing duties relating thereto. In this case, the agency thus requested to cooperate shall notify its opinion on the matter under consideration within seven days after the date on which the request has been made."

The Ombudsman is also a member of the Foreign Investment Committee, Korea's main investment policy-making body, which is composed of 12 ministers and 16 high-ranking provincial and metropolitan government officials. Furthermore, in March 2004, the Ombudsman was appointed as a member of the Regulatory Reform Committee, the country's sole body with a legal basis to conduct regulatory reform. Hence, the Ombudsman can directly voice his opinions on the legal and systematic changes required for resolving grievances and enhancing the investment environment.

From 2000 to the end of 2007, the OIO has received more than 3,200 grievance cases from foreign-invested companies in Korea covering a variety of issues such as construction, finance, tax, labor, IT, accounting, law, logistics, investment procedures, etc. Majority of these cases have been processed either directly by the OIO's "Home Doctors" or through proposals to the relevant government bodies seeking their cooperation or revision of regulations.

In 2007, 298 of the 370 grievances (80.5%) filed with the OIO were settled directly by Home Doctors. By field, taxation accounted for 16.8% of all directly resolved grievances, followed by investment incentives complaints (11.4%).

The concept of the ombudsman in Korea can be traced back to as early as King Tejong's reign during the 15th century Yi Dynasty. In 1402, the king set up the shinmungo, or drum of justice, outside the palace, and anyone who wished to report an injustice could do so by hitting the drum. One of the king's secretaries would then come out and attend to the citizen's grievance.

The painful financial crisis of 1997 was a blessing in disguise as it presented Korea with the opportunity to address and stimulate deregulation and active promotion of foreign investment. Recognizing the harmful effects of excessive government regulation and intervention on transforming Korea into a world-class investment destination, the Korean government has taken the following measures :

	The Office of the Foreign Investment Consultation was established within the Ministry of Telecommunications and Industry.
	The Office of the Foreign Investment Consultation was reorganized to the Office of the Foreign Investment Grievance Consultation under the Ministry of Telecommunications and Industry.
	The Investment Aftercare Team was established within the Korea Investment Service Center (KISC), as an arm of Korea Trade-Investment Promotion Agency (KOTRA), to provide one-stop service to potential foreign investors entering the Korean market.
	The Foreign Investment Promotion Act (FIPA) went into effect, offering a variety of investment incentives and simplified administrative procedures.
	The Office of the Foreign Investment Ombudsman (OIO) was established to address the post- investment difficulties faced by the foreign-invested companies in Korea, with the appointment of Dr. Wan-Soon Kim. as the first Foreign Investment Ombudsman.
	The Foreign Investment Ombudsman had been appointed by the Minister of Commerce, Industry and Energy. However, with the revision of the relevant laws, the Ombudsman is now directly appointed by the President of the Republic of Korea.
	Dr. Wan-Soon Kim was reappointed as the Foreign Investment Ombudsman for his second term in office.
	Korea Investment Service Center (KISC) was renamed as Invest KOREA and reorganized to further bolster the Korean government's foreign investment promotion activities.
	The Foreign Investment Ombudsman was appointed as a member of the Regulatory Reform Committee to give foreign investors a stronger voice in revamping the country's regulatory environment.
	Dr. Choong-Yong Ahn was appointed as the second Foreign Investment Ombudsman of the Republic of Korea.
	The Foreign Investment Ombudsman was appointed as a member of the Presidential Council on National Competitiveness.