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Changes in Chinese Legal System and its Impact on Korean Firms

Author Park, Jaegon et al. Date 2018.12.11 Page
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China is the destination of nearly 25 percent of all Korean exports and a major source of investment. The two countries enjoy a reciprocal economic relationship; Korea is China's third-largest trading partner overall and fourth-largest investor. Trade with China is of substantial importance to the Korean economy, as volumes between the two nations handily outpace those between Korea and the U.S. and Japan combined. It is thus plainly necessary to study and grasp changes in the Chinese economy and industrial landscape, for any effects produced by such changes are certain to bear influence on the Korean economy.

This paper surveys and analyzes the changes in Chinese law, institutions and national policy as they affect Korean firms currently doing business on the mainland and firms hoping to expand operations there in the future. It also studies the nature of the effects these changes have on Korean firms hoping to enter the Chinese market.

This study asks the following questions. First, why do we need to study Chinese law and ascertain its peculiarities? Second, what is the nature of the more recent changes in that country's laws? Third, what are the effects of these changes on private enterprise? And how should governments and private industry respond??