Where Does South Korean Enterprises Withdraw?

There is only one sea away, but the road of Korea's return is endless.

Most of the Korean enterprises leaving China are caused by a decline in competitiveness, and even if they are returning home, they will not be able to develop again.

Under the "wild goose" pattern of industrial boom and decline, low-cost manufacturing industry is following the "Europe America Japan Korea China Vietnam" pfer route.

China, whose per capita GDP is more than 2000 US dollars, is not the low cost production base of Korean bosses.

Korea: distant home

When Beijing enacted new environmental protection regulations last year, a South Korean businessman expressed indignantly to South Korean officials, "if I want to add environmental protection equipment, I prefer to stay at home.

At least I will promote South Korea's economic growth, not China's economy. "

There are more than one Korean.

In October 31st last year, the Ministry of Fisheries and Fisheries of South Korea said that a survey of South Korean manufacturing enterprises entering Qingdao, Yantai, Weihai and Shanghai from 10 to 12 last month showed that 14 of the 145 enterprises surveyed (9.6%) indicated that they intended to pfer factories or set up factories in China.

Although there is only one sea away, there is a long way to go.

So far, there has been no news that the South Korean enterprises have returned to Korea and operate successfully.

The price of labor in Korea is ten times that of China, and the price of land is much higher than that of China.

Some analysts said to global finance that Korean enterprises leaving China.

A large part is caused by the decline of competitiveness, even if it is returned to China, it is hard to develop again.

Watching South Korean companies go to China to open their factories, an official in Busan, the second largest city in South Korea, told the media: "when they arrive in China, they will come back again."

The implication is that Busan will develop high-tech industries instead of low-end manufacturing industries.

According to statistics from local government departments, 90% of Busan's enterprises in China are losing money.

DPRK: closer home

In 2008, Koreans began to quote Deng Xiaoping's famous saying: "get rich and be honored."

There are more than 2.3 such honorable people in Kaesong public park.

North Korean workers in the park get $57.5 a month more than the average Korean, including $7.5 in social insurance premiums.

The working hours of North Korean workers are 6 days and 48 hours a week.

In order to get more overtime, some North Korean workers often forget lunch and lunch break.

According to the laws adopted by the Supreme People's assembly of the DPRK, the Kaesong industrial zone is a special economic zone with a sovereign state belonging to the DPRK, which is managed jointly by the two Koreas and different economic policies are implemented.

There are now 69 Korean enterprises in which factories are set up. In 2005, there were only 15 Korea Companies.

The total area of Kaesong industrial park is 65.7 square kilometers, and the prospective plan accommodates 2000 enterprises.

Pu Chengzhe, President of the famous Korean clothing brand group, moved to the Kaesong factory two years ago. The president of the Kaesong Industrial Development Zone said that the labor cost in the Kaesong industrial development zone was only 1/3 of that in China, and the logistics cost was only half of that in China.

In addition, there are a series of preferential tax policies for enterprises.

If the factory is exempt from income tax within 5 years, it will only pay half of it in sixth to eighth years.

The compensation for enterprises may be equivalent to 50% of the loss due to the loss caused by external factors such as war and forced acceptance by the DPRK management.

Vietnam: when the peach is ripe

Over the years, textiles, clothing, footwear and bags in Seoul's largest clothing wholesale market, the East Gate market, are almost identical Chinese products.

But according to the Seoul economy, dealers in the East Gate market have turned their eyes from Chinese products to India, Vietnam and Nepal, which are cheaper than China.

According to a survey conducted by the East Gate market management and operation center, India, Vietnam, Thailand, Nepal and other countries have their own characteristics in addition to low wages. Manual crafts can be designed and manufactured according to the requirements of the Korean side and can be produced in time according to the Korean order.

Now a large number of South Korean distributors have gone to India, Vietnam, Thailand and Nigeria to order production, and plans to invest and build factories in these countries.

In June 14th last year, KOTRA called for "pferring your business to Vietnam and other Southeast Asian countries" in the report entitled "the pformation of Vietnam's textile industry after joining the WTO" and the strategic response of South Korean enterprises.

According to reports, the investment of Korean textile enterprises in China in 2006 was 10% lower than that in 2005, but the investment in Vietnam increased by 53.7%.

Mr. Seong ki Hak, chairman of -Youngone, Korea's largest textile group, said the group has many factories in China and Bangladesh, but will continue to expand the group's two phase project in Nam Dinh, Vietnam.

Small and medium-sized enterprises in Korea also have signs of increasing investment in Vietnam, or pferring their subsidiaries from China to Vietnam.

Unlike China, Southeast Asian countries represented by Vietnam are in a period of capital shortage. In order to attract foreign investment, the government has launched many preferential policies such as exemption from corporate tax from overseas enterprises.

At the same time, the labor cost of Vietnam is also far lower than that of China. The average monthly salary of Chinese workers has reached 200~250 US dollars, but the average monthly salary of Vietnamese workers is only 60~70 dollars.

Old, Cambodia and Mencius: the next round of hot land

A survey by the Export Import Bank of Korea shows that when Vietnam is about to pursue investment rather than attract investment, Korean enterprises are looking to areas with lower labor costs, such as the old, Cambodian and Bangladesh.

According to the Kampuchea Mekong times, the Ministry of labour of Kampuchea and the South Korean Embassy in Cambodia organized about 30 representatives of Korean enterprises to visit Kampuchea at the end of February, hoping to attract their investment in China to Kampuchea.

In 2006, Han Guochao