韓國企業의 海外直接投資 30年과 對中國 投資 10年의 特徵

The directly foreign investment for 30 years versus investment in China of Korea

Korean foreign direct investment which has been started from 1968 can be characterized as following. First, by industry, the investment has been focused on forestry till early 70’s, mining in 80’s, and manufacturing and trade industry from late 80’s. Second, by region, the ratio of the investment in Asian region, especially in China, is getting higher, which turns back from the investment in North-American region. Third, by the purpose of the investment, it is characterized by export-oriented investment. The investment in China has been started in 1988, rapidly risen after the normalization of diplomatic relations between Korea and China, and peaked in 1995 and 1996. This trend coincides with the general trend of Korean foreign investment. Especially, China becomes the second highest country following America in the investment volume within the short period of time. The investment In China can be characterized that with regard to region it concentrates on the Gulf of Pohai and North-Eastern Three Provinces, especially Shantung Province, and the investment in manufacturing industry prevails against all the other industries. In the case of small-and-medium-sized firms, labor-intensive industries such as fabricated metal, fiber, textile, shoe-making, and bag-making industry have been focused. In the case of large firms, machinery and equipment industries have been focused. The Korean foreign direct investment and investment in China have common characteristics in that both of them concentrate on the certain regions or areas, and mainly proceed in the exclusive ownership rather than joint ventures. Meanwhile, Korean companies have been investing in China considering future market potentials rather than making profits at the moment. Leaning toward the certain areas and industries resulted in over-competition among Korean companies. They should try to find counterplans to overcome the limitation of utilizing low-waged labors in certain areas. Accordingly, Korean companies should strengthen the information system of foreign investment environment and try to reduce the risks regarding the investment. Further, they should try to secure predominant position in non-price competition by enhancing technological management and brand name in order to strengthen their competitiveness. In conclusion, the foreign direct investment of Korean companies is represented by the characteristics of the investment in China. Therefore, Korean companies should throughly solve the problems caused from the investment in China, and this is the key to solve the general problems of Korean foreign direct investment.