China And The Rok Foreign-invested Enterprises, The Legal System Is A Comparative Study

The sharp increase of the foreign investment currently has become one of the driving engines for both China and South Korea's economic growth and development, and foreign investment's affection on the two countries' economics are more and more strengthened. During the past more than ten years, the investment environments of the two countries have been greatly improved and the two countries have made great achievements in attracting foreign investment. When we look at the future, both of the two countries are offered with good opportunities for development while having to face the challenges of global competition for foreign investment.Nowadays, China has become South Korea's largest trade partner and overseas investment destination, to the Korean enterprises, China has become the second "domestic" market. However, due to the difference between the two countries' political and economic system, it's difficult for Korean enterprises to have deep understanding of China' foreign investment legal system. In an environment where law is highly regarded, a set of sound laws, regulations and policies for foreign investment is key warranty to protect foreign investors' independent operation and lawful interests, as such, the legal environment has become one of the most important factors considered by foreign investors when they decide the location of the investment.Based on the foregoing and through studying the foreign investment laws and systems of both South Korea and China, this dissertation intends to make a comparison between the concepts, characteristics and legislation system contained in the South Korea's foreign investment promotion law and China's foreign invested enterprises law. With respect to the detailed legal system, this dissertation will mainly introduce South Korea's incentive policies, service and supporting system and free economic zone; and China's foreign investment enterprise establishment, capital contribution, management structure, operational compliance, dissolution and liquidation and etc.. By the comparison, we can find that there are big differences between the two counties foreign investment legal systems, no matter in legislation or in detailed implementing system. Further, there exist some problems in the two countries foreign investment legal systems, for South Korea, the major problems are that the foreign investment policies lack of attraction, the foreign investment supporting departments are scattered and the policies lack of consistency; for China, the major problems are that there exist some unreasonable regulations on the foreign investment system, the policies are not transparent and incentive policies are not unified, this dissertation suggests that China should reform its foreign investment system, improve the transparency of its policies and unify the incentive policies. All in all, this dissertation intends to promote the foreign investment of China and South Korea by introducing and studying the advantages of the two countries' foreign investment system.