The main purpose of this study is to focus on Korean outward foreign direct investment (FDI) in the automotive industry of the Czech and Slovak Republic, and to analyze consequences of Hyundai Motors investment for the Czech national economy. In doing so, this study is divided into the three parts. First theoretical part is concentrated on examination of current trend of FDI flows, its impact on developing and host countries, and theories and models of FDI. Second part is focused on analysis of consequences of investment policy generally. Final part is analyzing Korean, Slovak and Czech automotive industry and the impact of Hyundai Motor Company investment decision for the Czech Republic