Local firms favor China for low wages, growth potential

Despite recent deteriorations in the Chinese business environment, nearly four out of every 10 Korean companies with overseas units are considering investing in China within three years because of low wages and growth potential, a poll showed yesterday.

According to the poll of 365 South Korean companies taken by the Korean Chamber of Commerce and Industry in April, 39.3 percent of respondents predicted China will be the most promising investment destination in three years.

The United States was 12.8 percent, then Vietnam with 9.6 percent, while 71.5 percent said they plan to expand their overseas presence.

The companies cited low wages, potential for growth and low-priced raw materials as motives for future investment in China, according to the findings.

However, Korean companies saw sluggish performances in China and the U.S. last year, due to a volatile exchange rate, the U.S. economic slump and labor management in China, the chamber said. Yonhap