Interest in Mongolia on the part of foreign investors, especially those from East Asia, North America, has grown over the last few years, mainly in the mining, trade and service sectors. The increase of foreign direct investment into Mongolia the author linkages with the Mongolian government’s efforts to establish a more favorable external and internal legal environment in order to provide a free and open regime for business.
Increase in foreign investment has helped to broaden the base of the country’s economy, while providing more opportunities for the workforce, introducing new technique, technology and management methods, giving tax revenues. So there is no doubt to attract more foreign investment. But it is important to use this internationally recognized comparative advantage for attracting FDI into key development sectors of the country (mining, tourism, and agro-processing), to transfer and adapt innovation technologies for increasing competitiveness of local products and services, and encourage environmental protection and consumer rights’ protection while implementing FDI projects
The purpose of this paper is to firstly review foreign direct investment inflows into Mongolia, detailing the sectors benefiting from this investment and the countries where it originates and secondly purposes to examine available better solution for legal environment of Mongolia by comparing Foreign Investment Laws between Mongolia and Republic of Korea in order to increase investment flow into Mongolia and also manage it efficiently.