| Summary: | 碩士 === 國立臺灣大學 === 商學研究所 === 91 === This research is a comparative analysis of Korean and Taiwanese direct investment in China. Korea and Taiwan have achieved impressive growth through rapid industrialization and accelerated exports for several decades. More recently, the emerging neighbor, China has become the most attractive FDI (Foreign Direct Investment) host nation, surpassing the United States in 2002 for the first time. Moreover, China has become the number one recipient of Korean and Taiwanese FDI since they invested in China in the 1980’s. FDI patterns should be heterogeneous by their country origins due to the different operational and financial synergies from the interaction between location advantages and ownership advantages. Relying on this rationale, the two countries’ FDI patterns were analyzed by regional distribution, sector distribution, size of FDI, and forms of corporate ownership.
Firstly, in regional distribution, Korean investments were concentrated to the Northeastern provinces (especially Bohai Sea regions). By contrast, Taiwanese investment was concentrated in the Southeastern provinces. However, as investments are aimed increasingly at the domestic market, KDI and TDI have spread to Jiangsu and Shanghai. In particular, both countries investments were led by generally highly export-oriented small and medium enterprises (SMEs), while in normal FDI patterns SME do not usually invest abroad. Secondly, industrial sector distribution was quite similar to both Korean and Taiwanese FDI. Research shows that both countries’ firms have invested more heavily in electronics industries. Thirdly, regarding the size of FDI, KDI and TDI accounted for such small amounts similarly. More interesting results can be drawn from the linkages with local Chinese firms; Korean firms strongly favored WFE form. This explained the Korean obsession with ownership rather than better management of Korean FDI in China. However, Taiwanese firms more favored EJV form, handling tax and customs issues. Judging from the fact of having better knowledge about Chinese market environments, Taiwanese FDI being friendlier to Chinese government policy had a better chance of success. It seems that Korean firms are relatively in less advantageous positions than Taiwanese firms due to the cultural and lingual barriers, and relatively few experiences of investment into China.
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