German Media Highlights Jeju's 'Risk of Suffocation' Amid Chinese Capital Influx

German media has spotlighted the issue of Chinese capital flowing into Jeju Island in an unusual in-depth report.

The coverage pointed out that Chinese capital has heavily purchased real estate in Jeju, impacting both the local economy and security.

In an article titled "A Island Facing the Risk of Suffocation," the influential German daily Süddeutsche Zeitung detailed how Jeju has changed following the influx of Chinese capital.

It reported that Chinese has become common, from restaurant menus and duty-free shop advertisements to conversations heard on the streets.

In particular, it pointed to the real estate investment immigration system introduced in 2010 as the background for Chinese capital flocking to Jeju's real estate market.

This system grants residency qualifications to those who invest a certain amount or more in real estate and allows them to obtain permanent residency if they meet the requirements.

In fact, from the introduction of the system through 2022, the investment funds flowing into Jeju reached 1.26 trillion won.

Among these, 98% were from Chinese capital.

It is also estimated that approximately 90% of the 683 people who obtained permanent residency through this system were Chinese.

As of the end of 2019, the scale of Jeju land owned by Chinese nationals reached 9.81 million square meters.

This is about 0.5% of Jeju's total area.

However, what the German media focused on was not simply the scale of land ownership.

Pointing out that some real estate invested by Chinese capital is adjacent to military control zones and that Jeju is a key maritime transportation hub connecting South Korea, China, Russia, and Japan, it noted that the influx of Chinese capital needs to be examined not only from an economic perspective but also from a security standpoint.

It also raised the issue that profits earned by Chinese companies in Jeju do not sufficiently return to the local economy.

The government doubled the investment threshold for the investment immigration system from 500 million won to 1 billion won in 2023.

Following Taiwanese media last year, German media has now highlighted the issue of Chinese capital in Jeju, reigniting the debate over how far to attract foreign investment and how to manage it.

(Reported by Kim Minjeong | Video by Na Hong-hee | Graphics by Yook Do-hyun | Produced by SBS Digital News)
※ Please note: This article was translated by AI and may contain errors.