A Study On The Korean Enterprises' Direct Investment In China

As the economic relationship between countries becomes more and more close, foreign direct investment has already been an important economic means. FDI kept increasing in the 1990's, even though there was a trend of decrease during 2002-2003, it seemed begin increasing in 2004. Especially China which has attracted investors from all over the world.After China's opening up and various reforms, the economic has been growing rapidly, as a result, more and more foreign enterprises are coming to invest in china. Moreover, due to the access to WTO, China's economy has become more open in every aspect, it's domestic demand for market greatly enlarged, which result in the further development of the investment in China.Along with the establishment of diplomatic relationship between China and Korea, the bilateral economic relationship has become closer. Many Korean corporations invest in China, consequently, the two countries economy maintained sustainable and rapid development. In Chinese domestic market, however, the corporation of foreign companies has been more and more intense.But the relatively short time invest constitute difficulties to Korean investors. The characteristics of South Korean enterprises invested in China are very obvious. Primarily they are small and medium enterprises. Because China's geography is close with Korea, hiring the Korean National Minority can solve the language barrier.Primarily three northeastern provinces can possess the investment zone. The majority of the investment industry is manufacture. Very may enterprises have problems with investment. For the better economic relations between two countries it needs to regulate the blue print of Korean investment in China. From the analysis of foreign enterprises investment strategy and the examples of succeed and defeat of Korean enterprises present the improvements plans.This paper first ponders the main theory of international direct investment and reviews the status of international direct investment and also observes the strategy of the multinational company's investment in China. And then introduces the content of South Korean investment in China, which includes the phases of Korean EnterprisesInvestment in China, dynamics and characteristics of investment, examples of succeed and defeat of Korean enterprises investment in China. Also inspects the existing investment strategy again.This article conducts the realistic basic research and presented the investment plan of the South Korean enterprise in China.According to the changing Chinese market status, market tendency, the South Korean enterprise in China's investment needs to adjust its direction of investment. Subside the Korean Enterprises in China and indiscriminate the appearance of investment. To avoid the mistakes, needs the deep knowledge of Chinese market. To the present time, the Economic relation between China and South Korea is good. Later on, it is expected that the economical development will bring more good opportunities between the two countries.