For South Korean entrepreneur David Y.S. Yoon, the terrain, pleasant climate, easy access to foreign markets and sufficient labor sources were the reasons why he chose to invest in Qingdao.
He is one of many Korean entrepreneurs who, in the late 1980s, began looking at overseas markets.
"I went to Europe, Asia and Africa several times and I found Qingdao to be the most suitable for investing," Yoon says. "Of course, the Chinese economy was not as good as it is now. But I believed back then that the Chinese market would be prosperous."
Yoon founded Qingdao Dasan Imitation Jewelry Co Ltd in 1990, two years before China and South Korea formally established diplomatic relations. Dasan is the oldest Korean enterprise in Qingdao.
The jewelry company's initial capital of US$1 million has grown to $US5.5 million. Yoon expects that to increase by another $US2 million soon.
Yoon believes Dasan has driven the development of the imitation jewelry industry in Qingdao. He says there are now more than 700 jewelry companies here, and Dasan is the biggest.
"Many companies have been set up by those who hopped on board after our company was established," Yoon says.
Products made in Dasan's factory are exported to more than 50 countries, with the main markets in America and the Europe. The company's export volume exceeded $US20 million last year. The total export volume of the jewelry industry in Qingdao is worth about $US1,500 million, Yoon says.
The Consortium of Korean Enterprises in Shandong Province was set up in 1991 and Yoon served as the first chairman. Korean enterprises planning to invest in Qingdao now consult the consortium first about the investment environment.
The consortium plays an important role in promoting communication between the local government and Korean enterprises, Yoon says. There are more than 6,000 Korean enterprises in the consortium in Shandong.
According to the Qingdao Bureau of Foreign Trade and Economic Cooperation (BOFTEC), there are more than 4,000 Korean enterprises in Qingdao. The government approved 309 Korean items in the first half of this year, making up 58.5 percent of overseas-invested items.
"Korean enterprises are playing an important role in promoting Qingdao's economic development and easing employment pressure," says Yang Aimin, director of the Korean Department of BOFTEC.
Korean enterprises have developed from labor-intensive bases - food and clothing - to technology-intensive industries, such as chemicals, electronics, telecommunications, automobiles, machinery and computers.
"In 10 years, more than 300,000 Koreans will be living in Qingdao," Yoon predicts.
(China Daily December 24, 2007)
