• Journal of Arbitration Studies
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• v.16 no.1
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• pp.253-275
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• 2006

Ever since the open and reform policy in 1987, China has adopted the socialistic market economy system and has been moving forward in economic reform. This gradually expanded their market economy. The open and reform policy achieved the highest average annual GDP growth rate of 9% and helped the country maintain high growth. China's economic growth in recent years has a lot to do with the international trading and direct investment by foreign corporations. China's entry into the WTO dramatically increased their amount of capital and investments due to their aggressive investments with foreign corporations. It is quite amazing that investments in China has been constantly increasing while the direct investments worldwide is decreasing. Moreover, increase in such investments is contributing to China's job creation, as well as, the expansion of international trading. When international economic exchange started between Japan and China in the 1970s, it was in the form of aid for developing countries, hence the collection of the investment was out of the question. It was in the 1990s that Japan started the full-scale investments with China and it was mostly centered in transfer of the production base. Japanese corporations aim was to mass produce goods less expensively using abundant and cheap labor and to sell them to Japan and other countries. The amount of Japan's exports and imports compared with China is increasing every year but the trade deficit has gone into the red. The dollar amount has been decreased from $ 27 billion in 2001 to $ 18 billion in 2003. The problems and damages in the system of justice and administrative confrontation that Japanese corporations are facing are continuously at a stand-still even after China's entry into the WTO. It has been 20 years since Japan's advance in China and during that period, the Japanese corporations brought many changes ranging from exports/imports to direct investment. Although Japan's new corporations tend to be located in the mid-western part of China, rather than the coastal areas, the region itself is not the cause for the confrontation. The problem stems from the Japanese treating the Chinese as if they were Japanese because they look similar due to their Asian ancestry. In reality the Chinese have completely different ways of doing business. Here we will take a look at the international trading and direct investment of Japanese corporations in China and study the conflicts that occurred in business transactions with China through real examples.

• International Area Studies Review
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• v.14 no.2
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• pp.79-105
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• 2010

This paper investigates empirically the impact of foreign investors on a firm's dividend and investment decision making in Korean stock market. Empirical results using the sample firms in non-financial firms listed in Korean stock market whose settlement month are December, we find that foreign investors who declared participation in management didn't exert significant impact on dividend increase. In the case of investment, foreign investors exerts significant impact on R&D investments. Using Hausman-Taylor Instrumental Variable method, we controlled endogeneity problem related with foreign ownership and dividend and investment policy. The contribution of this paper is that the purpose of foreign investors whether or not participate in management is the most critical point and the impacts of foreign investors on dividends and investment are different whether they participate in management or not.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.2
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• pp.166-191
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• 2012

This paper investigates how the agent specificity of economic infrastructure-related public company proceeds in overseas investments. At first this paper examines general features focused on investment region, project type, starting year, and then analyzes overseas investments based on specific cases with three classifications which are composed of special consulting type that do not accompany capital investment, FDI type, and type of overseas energy resources development that go with capital investment and business risk. Finally nationality issues that is generated by agent characteristics of infrastructure public company are interpreted in perspective of duality which is financial pressure and dependency of host county's position, and relationship with private capital of home country.

• Journal of Information Technology Applications and Management
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• v.20 no.4
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• pp.67-81
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• 2013

Domestic telecommunication companies have increased in marketing expenditures and capital investments in their plants and equipments. Their expectation for their investment sometimes results in the shrinking of their ARPUs(average revenues per user) as well as decreasing of net profits. Those financial efforts have not always been positive relation with their ARPUs. Since western and european telecommunication industry recently have similar situation with our market where their mobile and network users have been saturated so that no more increased users are estimated. Therefore, this paper aims for first to explore methods maximizing the investments efficiency for the telecommunication company so that we choose bechmarked telecommmunication companies to explore their investment managing situation with resepct to their marketing and capital expenditure. Secondly this paper tried to suggest several public policy guidelines for domestic telecommunication industry. Total seventeen foreign telecommunication companies were selected and data set through official IR as well as AR were chosen. Curvilinear logarithmic regression analysis were tested to obtain elasticities as well as marginal effects. As a result, overspending on the marketing investment showed more negative indicators to their revenues, on the other hand, more investment in the Capex such as network infrastructures and other service facilities were more likely related to positive revenues.

• Korea Trade Review
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• v.43 no.2
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• pp.87-105
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• 2018

We investigate the effects of inward foreign direct investment on innovation in Korean industries from 1998 to 2015 by first dividing FDI into greenfield and M&A (mergers and acquisitions). Furthermore, we use the number of patent applications as the proxy of innovation. Our empirical results are as follows: First, inward foreign direct investment has a significantly positive effect on the number of patent applications. This result suggests that the transfer of technology or knowledge through the inward foreign direct investment has a positive impact on innovation in Korean industries. Second, the greenfield investment has a positive impact on patent applications. This result is consistent with Liu and Zou (2008)'s assertion that greenfield investment has a positive impact on innovation by increasing facilities or plants. The M&A investment, however, has no significant effect on patent applications. This result is consistent with Stiebale and Reize (2011) who argue that the host countries do not benefit from technology transfer through M&A investments. In addition, this supports Liu and Zou (2008) and Garcia et al. (2013)'s hypothesis that foreign parent firms do not influence the innovation of host countries by employing strategies to increase market power rather than R&D activities through M&A investments. It is meaningful that this study first analyzes the impact of foreign direct investment on innovation in Korean industries and uses the number of patent applications as a proxy of innovation. Our empirical evidence provides policy implications for innovation and attraction of inward foreign direct investments.

• Journal of the Korean Society of Clothing and Textiles
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• v.26 no.7
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• pp.958-969
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• 2002

No one doubts that textile and apparel industries have contributed to economic miracles of the export-led growth in Korea. However, by the turning of 1990′s, these sectors have encountered many problems such as decreasing of domestic production and exports mainly due to wage rise and shortage. Therefore, foreign direct investment to the low labor cost countries has been enlarged for a way of improving its competitiveness and increasing exports. However, no intensive study has been made exploring current investments and future directions. This study focuses Vietnam as one of the promising overseas investment countries. The purposes of this study are to analyze current investment status of Korean textiles and apparel firms in Vietnam, to explore merits and problems Vietnam has, and to present useful implications and strategies for Korean textiles and apparel companies. Analysis of current secondary data suggests that Korean apparel industry, rather than textiles industry, have invested more in Vietnam, mostly in southern Ho Chi Minh City. Investments of Korean apparel and textile firms have shown steady increase from 1990 but have turned to a decrease from 1995. Findings suggested that Vietnam has merits for attracting foreign investment since it provides relatively cheap labor and outstanding skillful hands suitable for apparel and textiles industries. In addition, because of EU quota increase and the trade agreement between Vietnam and USA it is likely for firms in Vietnam to increase exports to EU and USA Rapid expansion of domestic apparel market and "Korean trend (Han Rue)" in Vietnam resulted from successful star marketing of Korean firms are another merits Vietnam has to the Korean fm. However, regulations of central government, low efficiency of bureaucratic and stiff administrative process, difficulty of making decision in case of joint venture, lack of social overhead capital, high factory construction costs, weak construction condition, and the excessive competition among investment enterprises have found to be problems. Based on pros and cons of investment to Vietnam, marketing strategies, practical implications and future directions were suggested.

• Journal of Contemporary Eastern Asia
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• v.18 no.1
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• pp.30-48
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• 2019

China has initiated a series of "economic sanctions" against South Korea, affecting Korean pop stars visiting China and Korean investments in China. Sanctions were imposed on South Korea in response to the decision of South Korea to deploy Terminal High Altitude Area Defense (THAAD) in 2016. Furthermore, the Global Daily assembled local population to boycott Korean products and investments in China. However, the Chinese Foreign Ministry has never positively confirmed these activities as economic sanctions to South Korea related to the THAAD installation. In other words, the Chinese government singled a relatively weak message via these sanctions to South Korea. As a result, the THADD implementation continued in South Korea. In the paper, I interpret China's rationale to impost puzzling economic sanctions, which have a weak resolution, to South Korea and Taiwan. As signaling theory argues, economic sanctions with insufficient resolution, which are more likely to fail, is a more provocative foreign policy. By reviewing China's sanctions usage to South Korea and Taiwan, I propose arguments of bureaucratic competition to answer why China launched such sanctions to other countries: those are caused by domestic institutions who are seeking reward from the Communist Party of China. By comparing shifts of leadership between domestic agencies, the paper provides evidence to support the proposed argument. I also include two alternative explanations to strengthen the proposed argument, albeit connecting the paper with other two larger streams of research, which address analyses of China's aggressive foreign policies as well as the domestic politics of economic sanctions.

• Journal of Korea Technology Innovation Society
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• v.8 no.3
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• pp.1225-1249
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• 2005

This study aims at investigating whether foreign direct investment plays a role as a channel of international technology diffusion. We used the annual panel data from 1980 to 2002. The nonstationary panel techniques, in particular group mean panel FMOLS(fully modified OLS) was exploited as an empirical methodology in order to tackle the heterogeneity between members and low frequency. The empirical results show that inflow direct investments lead to an increase in total factor productivity and economic growth. Also outflow direct investments contribute to an higher total factor productivity and economic growth. These results confirms that both inflow and outflow direct investments are important channels for international technology diffusion or spillover.

• Asian Journal of Business Environment
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• v.6 no.1
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• pp.19-24
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• 2016

Purpose - This paper aims to find and analyze factors that determine the flows of bilateral foreign direct investment in intra-ASEAN. It specifically focuses on the dimension of macro-economic, natural resources, human resources, and the quality of governance. Research design, data, and methodology - Data were collected from 64 bilateral relations between ASEAN nations from 2002 to 2013. Panel gravity model was utilized to find factors that determine the flows of bilateral foreign direct investment. Results - Significant factors were identified that determine the flows of bilateral foreign direct investment: GDP home country, GDP host country, real interest rate, distance, and total natural resources rent. Unexpectedly, natural resources have a negative effect. Conclusions - In a situation of increasing the flow of FDI among the countries of ASEAN, the government should control the interest rates and maintain good relations with nearby countries. The negative effect of total natural resource rents implies that ASEAN countries should not depend on their natural resources to attract foreign investments.

• International Commerce and Information Review
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• v.7 no.4
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• pp.435-453
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• 2005

This paper suggests several strategies for promoting Trade and Foreign Direct Investment cooperation to the Korean government and companies as follows ; For Korean government, its trade policy would be given much weight on the import from the Vietnam in the early developing stage. This import could be compensated and increased with the counter export of Korean products like the industrial goods. For Korean companies, they would make haste to invest and develop the abundant energy and natural resources in Vietnam. Their desirable strategies would be moving small scale projects into large ones, production partnerships with the foreign developed and experienced companies, and international joint ventures for using inward FDI incentives. The long range vision and perseverance are indispensable for promoting trade and foreign direct investments between and Korea and Vietnam and both parties' win-win results and development in the end.