Research Of Korean Companies' Actuality And Problems In Qingdao

Earnest inroads of Korean businesses into China began with the normalization of diplomatic relations between Korea and China in August 1992 by Korean companies in pursuit of cheap and affluent labor, cultural and geographical proximity and huge sized domestic market of China, although there had been invasion of Korean businesses into the Chinese market before the normalization of diplomatic relation between the two countries on a small scale. Over the last 17 to 18 years, investment of Korean businesses in the Chinese market has grown so much in terms of area as well as size as to mean that Korea's overseas investment is no other than investment in China. What's more, China is considered world-widely to be the most favorable country for investment, so has risen to "the factory of the world". On the other hand, China has offered various favorable conditions for investment in an effort to attract foreign capital on the level of provincial and local governments, including favors in taxation, dispatch of investment invitation missions and advertisements by means of mass media.This study analyzed conditions for investment in the Chinese market with a focus on Qingdao area, Shandong Province where the largest number of Korean businesses have entered for its favorable conditions for investment in terms of history and geography, so called "a miniature of Korea's investments in China". To be specific, this study investigated economic conditions of Qingdao area and reality of Korean businesses operating there. This study also compared present investment conditions with early conditions to find changes of investment conditions to date.In the investigation on investment conditions of Qingdao area, this study focused on unfavorable conditions rather than on favorable conditions with a view to suggest effective improvements. It is expected that this study could be used as the data to improve foreign investment conditions by Qingdao city and help Korean businesses intending to enter Qingdao area understand investment conditions with ease.