The Influence Of Olympic Games On The Economic Development Of China And South Korea

The sports events and festival activities in various of size in the world may have considerable impact to the host country and the adjacent region. Large scale international sports event such as the Olympic Games, especially the summer Olympic Games (hereinafter referred to as "Olympic Games") can have far-reaching influence to the economic development of the host country or the region before and after the sports event. The Olympic Games cannot only bring tangible economic benefits to the host country and region such as production expansion, increase of employment rate and tourism income and sales income of broadcast rights, but also many intangible benefits such as elevation of the host country's international status and the increment of its international interaction opportunities. Since 1984 Los Angeles Olympic Games unprecedentedly gained 200 million USD profit, we can see increase trend of the profit of Olympic Games.After the 2008 Beijing Olympic Games, the economists and institutions from the world continue to have different study and estimate of its economic benefit. These study are mainly in two directions. One is from the aspect of foreign enterprises and is to find the best investment direction; the other one is the study within China in order to buffer the domestic conflict in recent years because of economic overheat. But except the positive impact to the host country, the Olympic Games may have negative impact to the host country. Thus, the analysis of the selection of host country and the economic success and failure of specific Olympic Games is more objective and more advisable for the study of the economic benefit of 2008 Beijing Olympic Games.As a neighbor country of China, ROK hosted the 24th Olympic Games at its capital city Seoul 20 years earlier than China. Just like what a slogan has said, "Seoul turns towards the world, the world turns towards Seoul",1988 Seoul Olympic Games facilitated ROK to rise in the international community rapidly, and the 1988 Olympic Games is one of the most successful Olympic Games in term of economy. Seoul Olympic Games features its less new investment as a considerable part of the Olympic facilities use the previous facilities. In accordance with a study of Korea Development Institute (KDI), the Seoul Olympic Games gains about 250 million USD surplus, while other indirect benefit cannot be measured in monetary terms. Although someone said the operation of the Olympic Games is not perfect, the Seoul Olympic Games is highly recognized for its best facilities in the Olympic history.The key of this study is to research the economic benefit of 2008 Beijing Olympic Games through the success of 1988 Seoul Olympic Games and raise policy recommendation to the Beijing Olympic Games. The paper takes the following 2 questions as its study objectives:the economic benefit the Beijing Olympic Games to Beijing and other regions of China; the solution of maximize the positive economic benefit of the Olympic Games.