A Comparative Study Between Chinese And Korean Legal Systems Of Foreign Direct Investment

By Lim Hoon- KiDirector: Xu JieDepartment of Economic LawThe Graduate School of China University of Political Science & LawDirect investment by foreign investors takes an important position in the development of domestic economy both in China and in Korea. In recent years, the direct investment between the two countries has grown very fast. However, there are still many differences between the two countries in the basic legal system and specific systems in direct investment by foreign investors. This paper is to make a comparative study on the legal systems of China and Korea in direct foreign investment on such a basis. The article is divided into six chapters besides the preface and the conclusion. Chapter One - Introduction; Chapter Two - Legislation and Policy of Direct Foreign Investment of China and Korea; Chapter Three - Legal Protection of Direct Foreign Investment; Chapter Four - Comparison between China and Korea in the Establishment of Foreign Investing Enterprises; Chapter Five - Comparison between China and Korea in the System of Capital Management of Enterprises with Foreign Capital; Chapter Six - Comparison between China and Korea in Preferential Legal System.Chapter one offers a detailed picture of the status quo of direct foreign investment in China and Korea, laying a foundation for further discussion in the article. Chapter one also states some motives and significance for writing this article,highlighting the feasibility and necessity to study the legal systems of China and Korea in direct foreign investment in the background of economic integration of the world and enhancement of regional cooperation, and explaining the method of study and the basic studying program.Chapter two introduces and analyzes the formation and development of the theory of direct foreign investment, and introduces the different understandings of the USA, Japan, China and Korea regarding the system of direct foreign investment, on the foundation of adequate comparison between micro theory and macro theory. It probes into the systematic motives and prospects in the formation and development of direct foreign investment system.Chapter three - Legislation and Policy of Direct Foreign Investment of China and Korea. It details and analyzes the changing process of legislation and policies of direct investment of China and Korea, and introduces the characteristics of the legal systems of direct foreign investment of the two countries. And, on that foundation, it compares the different understandings of the two countries regarding the system of direct foreign investment, arising from the different system backgrounds and different developing stages of the two countries.Chapter Four - Comparison between China and Korea in the Establishment of Foreign Investing Enterprises. The purpose of this chapter is to analyze the effects of different legal systems on direct foreign investment through comparison between specific systems. Thus, it makes a detailed comparison between China and Korea in their different legal norms concerning establishment of enterprises of foreign investment, including the scope of direct foreign investment (prohibitions and restrictions), the system cost in the establishing process, the approving systems and the registration systems.Chapter Five - Comparison between China and Korea in the System of Capital Management of Enterprises with Foreign Capital. The system of capital management of the enterprise is not only the core of the finance of the enterprise, but also very significant to the development of the company and the protection of the obligee. After stating the great importance of the capital of the company to the foreign funded enterprise, this chapter analyzes the different points of Chinese and Korean foreign-funded enterprises in their system of capital management, such as the objectives of contributions, the ratio of contributions, the performance of the investment and the change of the capital, etc., hoping to arouse the attention of the legislators of both countr...