The creation of free trade zones is a trade policy that consist on opening the national markets to foreign agents and therefore on eliminating trade barriers with other countries. The possibility of free entry attracts foreign capital and leads to higher levels of investment. Those new projects started with foreign money will need workers to function, and therefore will end up increasing employment too.
Such approach is opposite to the establishment of protectionist measures, which consist on setting trade barriers (custom duties such as tarriffs, quotas, etc.), and that would lead to the results explained in options A, B and C. It tariffs are set the goverment would increase the income earned from charging customs duties and the tariffs would prevent the free entrance of foreign competition. If the entry of foreign products and services is blocked is very likely that the influence of foreign countries decreases in South Korea.
