According to Chosun Ilbo, China is no longer the cheap manufacturing paradise for Korean businesses:

Not so long ago, China was the promised land for Korean textile and footwear companies that felt stifled by labor costs and regulations at home. The country offered labor for less than 1/10 of what Koreans demanded, provided benefits in taxes and land use, and workers there never went on a strike. The majority of such companies, over 7,000 of them, started settling in Qingdao in the late 1980s. But they have had a rude awakening.

The combined business results of foreign companies doing business in Qingdao in 2005 show that some 70 percent of Korean companies there are suffering losses, an official with the city government says. Why? There are four broad reasons: sharp increases in labor costs caused by labor shortages in coastal areas like the city, which was created by the nation’s fast economic growth; better welfare for Chinese workers; tighter environmental regulations; and cutbacks in benefits for foreign investors.

They should do what the Chinese do already: go to Vietnam instead. And, one day, when Vietnam becomes too expensive, where will they go? Burma? Oh, wait, they already do.