The United Nations Statistics Division classified countries into two major groups: “less developed countries (LDCs)” and “developed countries (DCs).” This classification is based on the country’s economic indicator, GDP and per capita income. However, this designation received some criticism because it implies that less developed countries are inferior to developed countries.
   However, the UN explains that the country designations “LDCs” and “DCs” are simply intended for statistical convenience and do not express judgment about a member country’s economic state. A less developed country is also called a developing country.
   To name a country according to its special economic features, a new term, “an emerging market economy” was created in the 1980s. An emerging market refers to a country that has some characteristics of a developed market but does not meet the standards of a developed market economy.
   In the aftermath of the Asian financial crises in 1998 and 1999, developing and emerging countries began to strengthen their policy to attract foreign direct investment (FDI). They had strongly believed that FDI inflow was the short cut to achieving sustainable growth.
   In recent years, these countries have learned that not only should they attract foreign firms with advanced technology to accelerate industrialization, but they should also try to keep the FDI in the country for a longer period of time. This is why developing countries have to provide aftercare services for foreign-invested companies operating business in the host country.
   On that note, Korea is cited as one of very few countries that has adopted the Foreign Investment Ombudsman system in 1999. This system was established by the Foreign Investment

Promotion Act. The Office of the Foreign Investment Ombudsman focuses on preventing and settling various grievances facing foreign investors. The team is comprised of professional specialists, including lawyers, accountants, financial analysts and labor counselors.
   On August 25, a delegation of 14 high- ranking officials from Pakistan visited our office. The delegates, who wanted to learn about the Foreign Investment Ombudsman system, were from the Ministry of Finance and the Department of Planning and Development and Economic Coordination of Presidential Office. They were amazed to learn that foreign investors in Korea have influence in the process of enacting new laws and regulations related to foreign investment.
   Similarly, on August 29, another delegation of 10 government officials from Uzbekistan visited our office to learn about the Korean Ombudsman system and the benefits available in the country’s Free Economic Zones.
   In the aftermath of the global economic recession, a new phenomenon has prevailed. Even developed countries began to attract FDI to increase their GDP and employment rate. They have started offering incentives for FDI from any country, regardless of whether it has an economy that is developed or still developimg.
   According to the OECD’s recent publication, the inflow of FDI into developing countries in Asia was USD