Previous discussion on the localization of business management practice of Korean FIEs in China in terms of "Qing-Li-Fa" paradigm has been suggested by J. H. Jeong(2003). Jeong shows that Qing, based on the moral values articulated with the traditional gift economy, has become the most important governing principle in the private space, which includes family rituals and community activities of Korean managers and Chinese laborers working in Korean FIEs. Whereas Li, based on capitalist market calculations introduced by the economic reforms, has become the most important governing principle in the non-state public space, such as official economic activities of the Korean FIEs. And finally, Fa. rooted in the Maoist politico-administrative institutions on which the post-Mao state machinery still depends, has become the most important governing principle in the state public space in terms of the political, legal, and administrative activities of Korean FIEs.
This paper is to be designed to find out the interaction process among the social spaces of "Qing-Li-Fa" principle is activated. Accepted that the importance of understanding the dynamic and complex cultural formation in post-reform China and the usage of "Oing-Li-Fa" cultural formation as an analytical framework, it is more important to understand the interaction among "Qing-Li-Fa" principle as well. For successful execution of the localization of business management of Korean FIEs in China, it is suggested that well-understanding of the unique nature of Chinese society characterized by "Socialism with Chinese Characteristics" as well as the dynamic interactions between post-reform Chinese culture and the business management of Korean FIE (Foreign Investment Enterprises) in China through the reformulation of the new cultural patterns appearing after the economic reforms.
In order to evaluate the impact of culture on the localization process of FIEs in China, greater emphasis must be given to understand firstly a new pattern of cultural formation in post-reform China has emerged, secondly the coexistence and interaction of three interdependent cultural value systems take place: the traditional moral values, the capitalist market rationality, and the socialist egalitarian principles.
In conclusion, this paper argues that the post-reform Chinese society is constituted by the cultural formation over-determined by three principles of Oing, Li, and Fa. By showing how this post-reform cultural formation has been established, constituted and reproduced through the mutually empowering Qing-Li-Fa principles, this paper concludes that successful localization of the business management of Korean FIEs in post-reform China can only be achieved when the respective governing principles of Qing, Li, and Fa is properly selected and applied to the corresponding spaces within the post-reform cultural formation.