German Daily Spotlights Jeju "Suffocating" Under Chinese Capital Influx

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

The report pointed out that Chinese capital has been aggressively purchasing real estate in Jeju, impacting both the local economy and security.

In an article titled "An Island Faces the Threat of Suffocation," the prominent German daily Süddeutsche Zeitung covered how Jeju has changed since the influx of Chinese capital.

It reported that Chinese has become common, appearing on restaurant menus and duty-free shop advertisements, and can be heard in conversations on the streets.

In particular, the real estate investment immigration system introduced in 2010 was pointed to 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 permanent residency once specific requirements are met.

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

Among these, 98% came from Chinese capital.

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

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

This accounts for 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 funded by Chinese capital is adjacent to military control zones and that Jeju is a strategic 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 regarding security.

The report also raised issues that profits earned by Chinese companies in Jeju do not sufficiently flow back into 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 shed light on Jeju's Chinese capital issue, reigniting the debate over how far foreign investment should be attracted and how it should be managed.

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.