This study aims to analyze cases of hosting foreign universities in UAE, Qatar, Singapore and China seeking policy implications to improve competitiveness of Korean higher education. Upon GATS and FTA agreements, Korean government has tried to host foreign universities in free economic zone. However the trial proved fruitless. Thus, the study examined the successful cases in hosing foreign universities and establishing education city for example, Education City in Qatar, Knowledge Village in Dubai, Global Schoolhouse in Singapore, Higher Education Town in China. The study found as followings. First, all examined case countries emphasized the significance of higher education to prevent a brain drain problem and economic development. Second, their major strategy was to attract universities, research institutions and industries all together. Third, they allowed the pursuit of profit by foreign universities and relieved regulations for the establishments. Fourth, they were successful in hosting international as well as domestic students. Based on the results, the study discussed implications and policy suggests to encourage establishment of foreign universities in Korea.