"Another Warning for Jeju: 'Chinese Language Everywhere—Island on the Brink of Suffocation'"

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 coverage, now even German media have turned the spotlight on the situation in Jeju, which is suffering from the indiscriminate inflow of Chinese capital. There are growing concerns that a massive influx of Chinese investment—facilitated by the past visa-free entry system and the low threshold for investor immigration—has driven up local real estate prices and the cost of living, thereby threatening the quality of life for residents. Moreover, issues such as the offshore outflow of profits by Chinese firms and national security risks stemming from the region's proximity to strategic chokepoints have amplified the urgency for a national-level response that goes beyond the mere attraction of 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

"Chinese Everywhere—Even the Streets and Menus": Jeju as Seen by German Media

The Süddeutsche Zeitung (SZ), a major German daily, recently published an article titled "An Island on the Brink of Suffocation," highlighting the dramatic changes in Jeju after the massive inflow of Chinese capital. The SZ reported from Jeju, observing, "Chinese dominates everything—from restaurant menus to duty-free ads, and even conversations on the streets of Jeju City," and noted, "The overwhelming presence of Chinese visitors and capital has led to significant burdens in the daily lives of local residents."

This is not the first time that foreign media have issued such warnings. Previously, the Taiwanese daily Liberty Times also examined the rapid rise of Jeju as a destination for Chinese travelers and investors since visa-free entry was allowed in 2008, publishing a June 2024 article titled "Is Jeju Island Becoming a Chinese Island? The Korean Government Busy Cleaning Up the Mess."

Foreign news outlets have unanimously analyzed that South Korea's low barriers to investor immigration have exacerbated this imbalance. The Liberty Times pointed out that, while countries such as Australia and New Zealand require large amounts of investment—about 4 billion won—for immigration, South Korea’s requirements are much lower: roughly 500 million won for a long-term stay (F-2) visa and 1.5 billion won for permanent residency (F-5) visa. As a result, more than 70% of all foreigners who settled in Korea under the investor immigration program were Chinese nationals, revealing a serious institutional imbalance.

Chinese Capital: Land Purchases Equal to Seoul’s Jung-gu

The encroachment of Chinese capital in Jeju is clearly demonstrated by statistics. After the Korean government introduced the real estate investor immigration program in 2010—which grants residency to foreigners who invest more than 500 million won and permanent residency if maintained for five years—Jeju became a primary target for speculative Chinese funds.

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

From 2010 to 2022, an astounding 98% of the total investment of 1.26 trillion won brought into Jeju through the real estate investor immigration program originated from Chinese investors. Nearly 90% of the 683 people who obtained permanent residency (F-5 visas) through the program are estimated to be Chinese, and these individuals have collectively purchased 1,955 properties in Jeju.

Backed by capital, Chinese developers have bought land in Jeju with plans to build theme parks, casinos, business hotels, large golf resorts, and high-rise apartments. By the end of 2019, Chinese land ownership in Jeju reached approximately 9.81 million square meters (about 2.96 million pyeong). This is nearly the size of Jung-gu in Seoul (9.96 million square meters), accounting for 43.5% of all foreign-owned land in Jeju.

Skyrocketing Real Estate Prices and Cost of Living: Uncertain Economic Benefits for Jeju

The problem is the significant side effects brought about by the massive influx of Chinese capital into Jeju’s local society. The unrestrained purchase and development of land by Chinese investors have caused real estate prices to soar, directly translating into higher housing and living costs for local residents. Moreover, the substantial profits generated by Chinese enterprises through large resorts, duty-free shops, and casino operations are not reinvested in the local community. Instead, these funds are transferred back to China, deepening the so-called "offshore outflow" phenomenon, and leaving Jeju residents excluded from the economic benefits.

As the situation deteriorated, Jeju authorities countered by stating that Chinese-owned land (9.81 million square meters) accounts for only around 0.5% of Jeju’s total area (1.85028 billion square meters), arguing that talk of a "Chinese island" is exaggerated. The Korean government also responded by doubling the minimum investment threshold for the investor immigration program from 500 million won to 1 billion won in May 2023 to curb indiscriminate capital inflows.

Geopolitical Concerns Also Raised

However, the SZ emphasized that quality, rather than just numbers, is at issue. The outlet drew attention to the fact that some real estate purchased with Chinese capital is located immediately adjacent to military control zones in Jeju. The paper also highlighted Jeju’s geopolitical importance as a strategic hub on maritime routes connecting China, Russia, Japan, and South Korea.

The seas around Jeju are pivotal maritime routes linking South Korea, China, Russia, and Japan, offering immense operational value from an intelligence agency perspective. Accordingly, experts argue that the challenge of Chinese capital inflow in Jeju should be addressed more rigorously—not simply as a real estate issue, but as a matter requiring comprehensive national security and Northeast Asian geopolitical risk management.

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