As global trade expands, the number of investor-state disputes is on the rise, prompting governments and investors alike to seek faster, less adversarial solutions. South Korea has been a pioneer in this space since 1999, offering a proactive approach to dispute prevention that continues to shape its foreign investment success.

Since its inception, South Korea’s Office of the Foreign Investment Ombudsman (OFIO) has played a key role in supporting foreign direct investment (FDI) and preventing investor-state dispute settlement (ISDS) cases. By providing “aftercare” services to resolve investors’ grievances with domestic regulations, the OFIO has helped foster those investors’ reinvestment—now making up 70% of Korea’s inbound FDI.

Dr. Choong-Yong Ahn, who served as Korea’s presidentially appointed Ombudsman from 2006–2014, shared with Washington CORE his insights on how the system builds investor trust through neutrality, informed regulatory reform, and practical problem-solving.

Dr. Ahn believes that Korea’s model can guide global FDI policy, especially in developing countries that are facing legal and bureaucratic challenges. He advocates for integrating ombudsman-style systems into international agreements to promote a more stable and fair investment environment for both investors and the host countries.

Read the full piece here to learn how Korea’s ombudsman model offers an alternative to ISDS and helps prevent costly disputes.