Hie South Korean government is on the defensive against charges that Asia's third largest economy is hostile to foreign investors, forcing them to step through a minefield of arbitrarylegislation.

At the center of debate are new disclosure regulations introduced last week that the government maintains are even-handed in tightening oversight of both domestic and foreign investors.

Under the new rules, shareholders acquiring more than five percent of a South Korean company must disclose whether they intend to influence the company’s management.

Investors also have to declare their legal status and management structure, the name of their largest backers and how they raised the capital for their investment.

While some foreign investors complained that the new requirements are aimed at tightening control over them, government officials say South Korea would be tough but fair in delaying with domestic and foreign investors.