## 2 Literature Review
(2019) and [PERSON] and [PERSON] (2019) emphasize the capacity of FDI to act as a conduit for the transfer of cleaner, more efficient technologies across borders. By enabling access to advanced technological innovations, FDI supports the adoption of energy-efficient practices in industries that are otherwise slow to innovate due to financial or technical constraints. This study further demonstrates that FDI not only promotes industrial growth but also reinforces sustainable development by enhancing the capacity of domestic industries to integrate cleaner technologies. The synergistic effects of FDI, energy efficiency, and green technology create a comprehensive pathway toward achieving the dual objectives of economic growth and environmental sustainability, offering a model for policymakers to optimize trade and investment strategies in alignment with global climate goals. Although energy efficiency and green technologies have demonstrated clear positive impacts on environmental sustainability, the role of foreign direct investment in this context remains a subject of ongoing debate within the literature. FDI, while a catalyst for industrial growth, often leads to an initial increase in CO\({}_{2}\) emissions, as industrial expansion drives higher energy consumption. This phenomenon is well documented by [PERSON] et al. (2019) and [PERSON] et al. (2020), who note that the influx of foreign capital typically stimulates energy-intensive production in the early stages of industrial development. However, the long-term effects of FDI tell a more nuanced story. Over time, FDI plays a pivotal role in facilitating the transfer of advanced energy-efficient technologies and practices, as evidenced by [PERSON] and [PERSON] (2019) and [PERSON] et al. (2020). These studies suggest that, while FDI may initially contribute to environmental degradation, its ultimate impact is a net reduction in emissions as industries adopt cleaner technologies and more efficient energy management systems. This research extends the existing literature by examining the divergent temporal impacts of FDI, providing fresh insights into how foreign investment contributes to emissions reduction. The analysis reveals that FDI not only drives industrial growth but also supports South Korea's long-term environmental goals by enabling the adoption of advanced energy management practices. By facilitating the integration of green technologies, FDI becomes a critical tool for decoupling economic growth from environmental harm. This finding aligns with the broader understanding of FDI's dual role, which initially exacerbates emissions but ultimately mitigates them through technological innovation and transfer. Additionally, the results underscore the necessity of aligning FDI flows with South Korea's overarching sustainability objectives. Policies that incentivize investments in green technologies are vital for ensuring that FDI serves as a driver of both economic and environmental progress. This perspective echoes the recommendations of [PERSON] and [PERSON] (2019) and [PERSON] et al. (2020), who emphasize the importance of strategically channeling FDI into sectors that prioritize sustainability. Thus, the study not only contributes to the theoretical understanding of FDI's environmental implications but also offers actionable policy guidance for aligning foreign investments with national and global climate objectives. In comparison to previous research, this study makes notable contributions by providing a more refined understanding of the dynamic relationship between trade policy, energy efficiency, and carbon emissions. Earlier studies, including those by [PERSON] and [PERSON] (2019), [PERSON] et al. (2020), and [PERSON] et al. (2020), have extensively examined the roles of economic growth and urbanization in contributing to rising emissions. However, these studies have not sufficiently addressed the mitigating effects that energy efficiency can exert over time.