"Is Jeju Becoming a Chinese Island?" After Massive Land Purchases, Another Warning: "This Is Dangerous"

German Newspaper SZ Highlights the Encroachment of Chinese Capital in Jeju
Soaring Real Estate Prices and Living Costs, But Little Local Benefit
Security Concerns Raised Over Proximity to Military Strategic Zones

Following Taiwanese media, German media outlets have also begun highlighting the current situation in Jeju, which is struggling due to the unchecked influx of Chinese capital. It is pointed out that, building upon the past visa-free entry system and a low-barrier investment immigration program, an enormous influx of Chinese funds into Jeju has driven up local real estate prices and living costs, thereby endangering the quality of life for local residents. Additionally, issues such as the outflow of profits by Chinese companies to overseas locations and security risks stemming from proximity to strategic points have intensified the call for more comprehensive measures at the national level, beyond merely attracting tourism capital.

Chinese group cruise tourists who arrived at the Incheon Port International Cruise Terminal in Yeonsugu, Incheon, are heading towards buses. Photo by Yonhap News

"Both Streets and Menus in Chinese" ... Jeju Portrayed by German Media

Germany’s leading daily newspaper, Süddeutsche Zeitung (SZ), recently published an article titled "An Island on the Brink of Suffocation," which examined Jeju’s dramatic transformation following the massive inflow of Chinese capital. Reporting on the local situation, SZ noted, “From restaurant menus to duty-free advertisements and even conversations heard in the streets of Jeju-si, everything is in Chinese.” The article further stated, “As both the number of Chinese visitors and the concentration of Chinese capital have become excessive, local residents are experiencing severe strains in their daily lives.”

This is not the first warning sounded by foreign media. Previously, in June 2024, Taiwan’s Liberty Times published an article titled “Is Jeju Becoming China’s Island? The Korean Government Busy Cleaning Up After Things,” which covered the rapid rise of Jeju as a Chinese travel and investment destination since the relaxation of visa requirements in 2008.

Foreign news outlets have unanimously analyzed that Korea’s low threshold for investment immigration has exacerbated these imbalances. Liberty Times highlighted that while countries such as Australia and New Zealand require around 4 billion won for investor immigration, Korea’s requirements are considerably lower at approximately 500 million won for a long-term stay (F-2) visa and 1.5 billion won for permanent residency (F-5) visas. As a result, it was pointed out that more than 70% of all foreigners who settled in Korea through investor immigration since the program’s inception have been Chinese nationals, illustrating a severe policy bias.

Chinese Capital Acquires an Area the Size of Seoul Jung-gu

The penetration of Chinese capital into Jeju is also proven by statistical data. After the Korean government introduced the "real estate investment immigration program" in 2010, granting residency to foreigners investing over 500 million won and permanent residency if this was maintained for five years, Jeju rapidly became a target for speculative Chinese capital.

Chinese tourists arriving at Jeju Port on the cruise ship Dream, coming from China, are walking off the ship with bright smiles. Photo by Yonhap News

In fact, from 2010 to 2022, of the total 1.26 trillion won invested in Jeju through the real estate investment immigration program, a staggering 98% was from Chinese investors. It is estimated that approximately 90% of the 683 people who obtained permanent residency (F-5 visa) through the program were also Chinese, who together purchased a total of 1,955 properties in Jeju.

Backed by capital, Chinese developers actively purchased land in Jeju to build theme parks, casinos, business hotels, large-scale golf resorts, and high-rise apartment complexes. As a result, by the end of 2019, the area of land owned by Chinese nationals in Jeju amounted to about 9.81 million square meters (approximately 2.96 million pyeong). This is almost the same as the total area of Jung-gu in Seoul (9.96 million square meters) and equals 43.5% of all land in Jeju owned by foreigners.

Housing Prices and Cost of Living Surge Amid Chinese Capital Inflows... Economic Benefits for Locals Remain Uncertain

The main issue is that the large-scale inflow of Chinese capital has caused significant side effects within Jeju’s local community. The indiscriminate buying and development by Chinese investors have led to a sharp increase in local real estate prices, directly translating into higher housing and living costs for local residents. Moreover, enormous profits made by Chinese-owned companies operating large resorts, duty-free shops, and casinos have not been reinvested locally or circulated within the community; instead, the funds have been remitted overseas—a phenomenon known as "capital outflow." This has resulted in Jeju residents being excluded from enjoying the economic fruits of this capital inflow.

As the situation deteriorated, Jeju authorities explained that the land owned by Chinese nationals (9.81 million square meters) accounted for only about 0.5% of Jeju’s total area (1.85028 billion square meters), arguing that the term "Chinese Island" is an exaggeration. In May 2023, the Korean government also sought to curb unchecked inflows of capital by doubling the minimum required investment for the investor immigration program, raising it from 500 million to 1 billion won.

Geopolitical Concerns Also Emerge

However, SZ focused on qualitative changes rather than sheer numbers, highlighting the significance of some Chinese-invested properties being located right next to military control zones in Jeju, as well as Jeju’s unique geopolitical value as a maritime hub connecting China, Russia, Japan, and Korea.

Sea lanes around Jeju serve as strategic chokepoints linking Korea, China, Russia, and Japan, and are considered to hold immense value, especially from an operational intelligence standpoint. For this reason, experts recommend that the issue of Chinese capital inflows to Jeju be addressed not just as a real estate problem, but with greater gravity as a matter of national security and Northeast Asian geopolitical risk management.

This content was produced with the assistance of AI translation services.