They said the existing approach of lobbying based on "Guanxi" won't work as an effective tool to resolve problems in China in the long term. Guanxi, roughly translated as relationships or connections, is known to be a crucial part of business life in China.

They claimed that the Chinese leadership has begun to change, while the local regulatory environments are also undergoing changes. They didn't elaborate on the leadership changes.

Korean companies require people who fully understand local business policies and can advise what proper responses should be taken to achieve good results in China, Ling Jin, director of Control Risks, said at the seminar.

Andrew Gilholm, another director at the consultancy, advised Korean companies to set up mid- and long-term risk management programs regardless of diplomatic disputes between the two countries.

Citing China's recent economic sanctions on Korean businesses due to the ongoing deployment of an advanced US missile defense system in South Korea, he expected a limited impact on bilateral businesses. (Yonhap)