Since 1997, South Korea began to take a positive policy for attracting foreign businesses and investment, relax the rules and system related to foreign investment, relax restrictions on new industry investment, study and rectify restrictions on foreign investment, reform all kinds of measures which inhibit foreign investment, as well as improve restrictions on foreign investment. Besides, the government not only designated individual independent foreign investment zones, but also expanded the designated scope to the knowledge service industry. In addition, they have improved the investment conditions in the non-profit legal person, such as science, technology, academic, art, and etc. They have also sorted out and revised the high-tech catalogue, upgraded major industries, mainly in the new energy industry, and conducted tax relief. They have expanded the scope of the site support rent reduction, from manufacturing to new industries. They have made great efforts and also gained impressive results on expanding joint development projects between foreign investment enterprises and domestic research institutions, and strengthening research and development support for the scale of technical development projects. Till May 2018, the total foreign direct investment had reached $4934 million, including $1540 million for manufacturing and $3341 million for service industry. The market value of foreign shares in May 2018 had reached up to 623.9 trillion won, which represents a rate of 32.7%. As it is known, all Korea’s big companies have foreign investment, and the foreign investment accounts for more than 1/3. Up to now, there are 1055 kinds of businesses that are fully open. The reason why South Korea’s foreign investment has achieved the brilliant development depends on its positive development strategies, of which the positive legal policy is the key, and is the foundation. In the early period of Korea’s founding, capital-raising mainly depended on the grant of foreign free aid. In early 60s, foreign capital introduced in the form of public loans had gradually shifted to commercial lending, which reflected the expanding role of private capital in the process of economic development. With the introduction of a large number of foreign commercial loans, the burden of principal repayment increased, and thus the government started to explore some policies to promote foreign direct investment in order to alleviate this burden, and after considering that the foreign capital direct investment could achieve the introduction of advanced technology and other ancillary effects, the Foreign Capital Import Promotion Law was introduced. Since 1963, in the process of forming the domestic total fixed capital, the private financing way had surpassed the national sectoral financing. In 1966, in order to attract, protect and use the foreign capital more rationally, the Law on Foreign Investment, which included the preferential treatment for foreign capital was formulated after the integration and rearrangement of existing foreign capital introduction relations laws. For the income tax, corporation tax, purchase tax on real estate, construction and etc., the property tax, dividend income and the fees to use technology, during the first five years, it could be exempted from the full amount, and in the next three years, it could be exempted from half. Furthermore, the import and export duties, such as customs duties and etc., were also exempt, including a variety of preferential measures, such as the reinvestment, the investment license for other business capital, ease of foreign capital had been constantly strengthened. After 12 revisions, up to January 30, 1997, the name was changed to the relevant laws of Foreign Investment and Foreign Capital Introduction. By September 16. 1998, the< Law on the Promotion of Foreign Investment> had been amended twice before being abolished. In 1998, the Foreign Investment Promotion Law was enacted, and thus entered a new period of active investment promotion policies. In conclusion, the history of foreign investment laws can be summarized as Foreign Capital Import Promotion Law, Law on Foreign Investment, relevant laws of Foreign Investment and Foreign Capital Introduction and Law on the Promotion of Foreign Investment according to the order. The policies of foreign investment in South Korea has experienced a transformation from negative to positive. After that, a series of supporting legal policies created a systematic soft environment for the industrialization of technology research and development and ensured the steady growth of foreign investment. Foreign investment mainly focuses on the expansion of the number of foreign direct investment, and adopts the incentive policies of investment amount to attract large-scale foreign investment, which plays an important role in improving the quantity and quality of Korean economy.