This paper recognizes the recent surge in cross-border investments by MNCs from newly industrialized countries and investigates the wealth effects of FDI announcements by Korean firms, which are the leading FDI providers in Asia. The empirical results indicate that for Korean MNCs: 1) cross-border investments increase shareholder wealth; and 2) they do not obtain the firm-specific technological advantages over international competitors. The paper also presents evidence that cross-border investments do not increase shareholder wealth for the 30 largest chaebol-affiliates, and that shareholder wealth losses are greater when corporate ownership is concentrated, as suggested by Shleifer and Vishny (1997) and La Porta et al. (1998, 2000).