The paper attempts to assess changes in the Korean business environment after the 1997 financial crisis from a foreign perspective. To this end, a comprehensive survey has been conducted of foreign business people in Korea. Although Korea has undertaken various policy measures and all-out efforts to improve its business environment in the recent past, the present study shows that foreign business people have in general a negative view on the progress. It further shows that there is substantial room for improvement in numerous areas. Not only should excessive government regulations and bureaucratic power be removed, but unfair advantages bestowed on domestic firms, inflexibility in the labour market, and living conditions of foreign expatriates should also be improved. Korean people need to become more open and amicable to foreigners and foreign business operations in Korea.