Research On The Development Strategy Of Korean Enterprises In Qingdao Coping With The Changes Of Investment Environment

As China is doing better in reform and opening to the outside world, the investment of Korean businessmen is turning up sharply. China becomes the first target country of investment of Korea. As China's coastal city opening up to the outside, Qingdao has its unique advantage. In Qingdao, the foreign investments are mainly from USA and some Asian countries or regions such as Korea, Japan, Taiwan and Hong Kong. The most important investment is from Korea, so Korean enterprises hold the balance of power in the foreign investment structure of Qingdao. In recent years, foreign investment policies have been changed, appreciation of the RMB has risen, adjustments in the level of export tax rebates have been made, price of labour power has risen, land approval has been more strict and the credit has been reduced in China. All these changes are so large and the investment environment of the recent period is much more different than the initial period of using foreign funds. Faced with profound changes of investment environment, Korean enterprises in Qingdao meet with obstacles and difficulties. At the beginning of 2003, Korean enterprise began to withdraw funds illegally.The thesis assimilates extensive theoretical achievements of predecessors and collects and studies quantitative data about foreign funds, the changes of investment environmental elements and also the industries, investment ways, scale and performances of Korean enterprises in Qingdao. To come to a conclusion, the thesis uses the comprehensive methods of unity of theory and positive analysis, graphical data analysis and normative study.. From the Korean enterprises' perspectives, the thesis analyses the features and problems of Korean enterprise as the investment environment has changed a lot. Most of Korean enterprises are small and medium labor-intensive, export-oriented and lack of technologies. The thesis analyzes the effects of adjustments of business tax rate, labor price, preferential policy and upgrading of industrial structure on Korean enterprises and studies the losses and shock from financial crisis. The thesis also shows the features of Korean enterprises, which withdraw funds clearly in three ways of industry characteristic, subject of withdrawing fund and investing forms. A lot of problems of Korean enterprises exist, such as haste and blind investment, leaning too much on preferential policies, over labor-intensive, small scale, environmental pollution, slowly upgrading technology and unreasonable inner management and so on.At last, the thesis puts forward a lot of strategies to solve the problems of Korean enterprises coping with the changes of investment environment and gives advice to the development of Korean enterprises and Korean businessmen combining with the present investment situation and policy adjustments of Qingdao. The thesis comes to a conclusion:Korean enterprises combined with the adjustment of industry structure and entering tendency of Qingdao, should make measures actively, transform the management views, change the erroneous tendency, upgrade industry technology, promote the level of inner management, strengthen the contact with government and domestic enterprises and realize the localization to take the advantage of Qingdao and attain the objective of existence and development in Qingdao.