중국에 재투자 한국기업의 입지결정요인에 관한 연구

A study on the decision making factors of location for re-investment in China by Korean firms

In 1992, Korean businesses began to express an interest in investing in the Chinese market due to ‘push factors’, which involve the high cost of land and labor, zoning, business sites, etc., in Korea, and the ‘pull factors’ which involve the attractiveness of the potential of the Chinese market and the low cost of operation there. Therefore, there is some question about what governs Korean firms decisions in initial investments and re-investments for the choice of locations. This study focuses on the decision making factors of location which influence Korean businesses re-investing in the Chinese market. The result of this study shows that of the five factors which influence location decision making, (policy, cost, social overhead conditions, cultural environment and market factors), Korean firms are more concerned with the cultural environmental factors when deciding upon an initial investment. Re-investment is more influenced by the market factors and policy factors. It is the purpose of this study to demonstrate that Korean companies should consider the following to successfully re-investment in China. First, the market must become more segmented. Second, business must be more competitive when dealing with Chinese and other international firms. Third, Korean businesses must strive for recognition of their brand names, trademarks, and logos.