Half of Korean firms in China to expand business: poll

SEOUL, Aug. 24 (Yonhap) -- About half of South Korean firms operating in China
are considering expanding their business there amid signs of a global economic
recovery, a poll showed Monday.

According to the survey of 636 South Korean companies in China taken by the Korea
Trade-Investment Promotion Agency (KOTRA) in August, 48.6 percent of the
companies polled are considering expansions in China and 41.17 percent plan to
stay at their current size.
Only 6.1 percent said they will scale down operations in China, while 0.9 percent
are preparing to move their bases to other countries and 0.3 percent will
withdraw from the country.
According to the findings, the biggest reason for Korean companies to invest in
China was to better target China's expansive domestic market (34.0 percent),
followed by cheaper labor costs (20.9 percent) and the deterioration of South
Korea's business environment (10.6 percent).
China's business environment is seen to be improving for South Korean firms, as
48.5 percent said the country is becoming more business-friendly, in comparison
to 36.7 percent who responded negatively.
ygkim@yna.co.kr
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