Yanbian Korean Companies Investing In The Current Situation

Since 1992, China and Korean established diplomatic relations, Korean enterprises started to invest in YanJi. Yanbian has advantageous geographical position, convenient transportation, favorable natural environment, popularity relation is one of the factors that the Korean investors invest here. besides, the Yanbian area attaches importance to the education thus the laborers from Yanbian have higher quality. Most of the people live in Yanji are the Korean nationality, so it is easy to recruit the talented person who understands Korean well. These advantages are the important factors make the Korean enterprises invest in Yianbian area.The actual make use of foreign capital fund in Yanbian continuously rose from 2002 to 2007, however it was decreased in 2008 because of the financial crisis. Till 2008 there were 541 Korean enterprises, The actual make use of foreign capital fund was 48.28million dollars, The actual make use of Korean capital fund was 15.54million dollars which account for 32.19% of the total investment amount actually being used. Korean capital plays an important role in the economic development of Yanbian. It is not only made up for lack of funds for state construction, but also promoted the development of foreign trade, imported the advanced technology equipment and management experience, promoted the upgrading of the industrial structure, improved the structure of export products, enlarged the social employment in certain extent, increased the fiscal revenue, favorable to promote the economic development of Yanbian.The utilization of Korean capital by Yanbian state can be divided into four stages. First stage:slow growth (1989-1992), the second stage:rapid growth (1993-1996), the third stage:negative growth (1997-1999), the fourth stage:restore development (2000-recent). The situation of foreign-funded business in Yanbian, the distribution situation of foreign-funded enterprises in Yanbian, the distribution situation of every counties (cities) in Yanbian, all the three situations above make us understand better about the situation of the Korean enterprises in Yanbian.The situation of foreign capital business in Yanbian, the situation of foreign capital in Yanji city and development zone in Yanji city, the situation of industrial distribution in Yanji city can be knew by analyzing the situation which above-mentioned.Most of the Korean enterprises in yanji city are minor enterprises which are low-tech, labor intensive, high energy consumption, these Korea enterprises are regarded taking low economic contribution to yanji, so this thesis offered proposals for Yanji city about importing Korean direct investment.