Asian workers in the Gulf states of the Middle East

One of the most conspicuous developments in recent years in the Korean political economy is the enormous increase of Korean investment in Southeast Asia, especially Indonesia. In particular, since the appreciation of the Korean currency (won) in 1987 and the rapid increase of industrial action by Korean workers, more Korean foreign direct investment (FDI) has been carried out by small-and medium-sized firms, particularly in the manufacturing sector. However, many of the Korean firms in the region have already experienced various problems. This article examines the determinants of the new phase of Korean FDI. It also discusses the possible consequences of Korean FDI in Indonesia.