Investing In PPP Projects In China For Korean Companies

Infrastructure for a country’s economic development plays an important role. Sincethe reform and opening up, along with the rapid development of China’s economy, thesocial infrastructures an increasing demands. In order to meet the demand and ease thegovernment’s financial burden, the Chinese government for the first time since the80sin the second phase of power plant ShaJiao tries PPP (Public-Private-Partnership) mode,China has more and more of the PPP projects. On foreign (including South Korea)enterprise is one of the most attractive markets in the world.However, because of Chinese PPP policy and market lack of understanding, untilnow can be successful to enter the Chinese market in the South Korean enterprise canbe counted on one’s fingers. At present from foreign Angle for Chinese PPP researchvery little, from the point of view of the Korean enterprises is almost blank, one of thereasons is the world politics, economy and law system is different, the PPP mode isdifferent, therefore, this paper USES the literature retrieval and case analysis, the first ofthe two countries to the development of the PPP carding and similarities and differences,then to the two countries’ PPP mode analysis, find out the two countries can learn fromeach other on the place, for the Chinese government in infrastructure projects attractforeign investment enterprises, especially Korea perfect investment policy providereference, finally, according to the above conclusions and comparative analysis fromSouth Korea before the enterprise’s success, failure case for analysis of the main resultsof the comprehensive up, for South Korean enterprise to enter the Chinese infrastructuremarket put forward some Suggestions, also for China and South Korea enterprises tostrengthen understanding and cooperation in the domestic and foreign markets providethe basis.Research shows that the two countries’ PPP mode of the main differencesare: social environment in South Korea exist PPP project decrease tendency,and China is also in the growth stage; Legal aspects South Korea PPP lawestablished comparatively perfect, but China although there are relevant lawsbut not perfect; The function of government in the south Korean government forPPP project supportive function is strong, and the Chinese government’s restrictive role better than South Korea; Project flow South Korea PPP projectprocess with a fixed system, but China item type, scale, the local market,relevant laws and government agencies is different, the PPP project specificprocess is endless also and same.Combined with the characteristics of Korean enterprises, it is suggestedthat Korean companies should first consider China’s most promising powergeneration, environmental PPP project. Korean enterprises to succeed in Chinathese PPP market, need to understand the similarities and differences betweenKorean and Chinese PPP, especially the particularity of China. Apart from thecentral government’s policies, detailed project grasp the local governmentpolicy is also very important; With China’s state-owned enterprise shares in theform of investment, establishes the cooperation relations strategy; China relatedcomprehensive information network need further construct and so on.