A Study of Supply Chains of Korean Firms in China Based on Business Survey Data
|Author||Kim Dongsoo(김동수), Park Jaegon(박재곤), Sagong Mok(사공 목), Cho Eunkyo(조은교), Park Kayoung(박가영), Park Sohee & Han Jungmin(박소희, 한정민)||Date||2021.04.30||Series|
The purpose of this study is to determine the business conditions of Korean companies in China. For this, a business survey was conducted from October to November 2020 by the Korean Institute for Industrial Economics and Trade (KIET) and the Korean Chamber of Commerce in China. The scale of Korean direct investment in China as well as Korea-China trade has increased rapidly over 28 years since the normalization of Sino-Korean diplomatic relations, but it is necessary to gather basic statistics on Korean enterprises in China in the mid- to long-term. This survey on the business environment and actual conditions of Korean enterprises shall be regularly conducted to establish basic facts and future changes in the business environment. The behavior of Korean companies shall also be studied. The Korea Institute of Industrial Economics and Trade organized a survey on the business environment and actual conditions of Chinese enterprises; the Beijing office of the Korean Chamber of Commerce was in charge of the survey as co-organizer. KIET planned and conducted the survey together with the Korean Chamber of Commerce in China. The survey is divided into written surveys and in-depth telephone surveys.
Written responses were collected from 480 companies; in-depth telephone surveys were conducted with representatives from 20 companies. Out of the total 480 respondents, 300 (62 percent) were Korea-based companies. Thirty-six (eight percent) firms reported being headquartered in China. By corporate location, 364 firms (75.8 percent) were located in the provinces of Guangdong, Jiangsu, Shandong and the city of Beijing, representing the three largest metropolitan economies of China: the Capital Region (Beijing, Tianjin, Hebei), the Changjiang River Delta Triangle and the Zhujiang River Delta Triangle (Guangdong). By industrial sector, 18 firms were agricultural and fisheries companies (3.8 percent), 23 were mining concerns (4.8 percent), 368 were manufacturing companies (76.7 percent) and 71 were service outfits (14.8 percent).
In terms of employment, 121 companies (25 percent) employed between 30 to 100 workers; in terms of sales, 119 companies (24.8 percent) reported sales between 10 and 50 million CNY of sales in 2019.