The purpose of this paper is to clarify the process of the formation of the Korean Commercial District with the investment from Korea in Changchun, China, through the role of the Changchun local government.
The policy of the Merit Review System of the Chinese Government has influence even on the unban planning of the local city since the opening-up of China.
As an example of it, the Korean Commercial District was established in Changchun, and it has become one of the contributive factors to the Changchun economy. Changchun’s Korean Commercial District started spontaneously at the first stage, and has since grown gradually to the second stage of the designed development. At the beginning of the District, the opening of shops and offices by Korean students was the trigger, and as time passes both the Changchun City Government and the Kangwon Province Government of South Korea have given strong support to it. The Changchun Government has taken charge of preparing favorable environments for capital investment and business management for Korean students and businessmen staying in Changchun. At the sometime the Kangwon Province Government has focused on attracting investment from South Korea, and asking for official support to the Changchun Government in order to help those Koreans who have difficulties or need assistance.
But because the introduction plan of Korean capital has not been successful, the Changchun City Government established the Guilin Office to provide overall services for the Korean Commercial District.
Now it is clear that the Changchun City Government has played a major role at the second stage of development.
The starting point of the Changchun’s Korean Commercial District was activation of the urban economy. This is because the top management of the city began to be eager to add to their achievements, as is seen all over in China, due to the introduction of the Merit Review System, since the opening-up of China. In order to do this they used their power and positively pumped a lot of money into the project and invited more people from Korea. The Korean Commercial District was constructed in this context.
The construction of the Changchun’s Korean Commercial District and the following growth of the City are results of the collaboration of the top management , the Merit Review System and the administrative performance. And the collaboration led to the economic development in Changchun. This is a representative case of the development of a commercial district in China after the opening-up of China.
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