South Korea's Direct Investment Issues

Since Korea has established the diplomatic relations with China in 1992, Korea began to carry out direct investment into China, which increased rapidly. After the Asian financial crisis in 1997, because of the deterioration of Korean economy, Korea decreased the investment both in quantity and scope. However, after 2000, with China entering WTO and China's economy growth remaining strong, the investment from Korea went up again, and increased at an astonishing speed. China has already become Korea's biggest investment destination till 2002. By analyzing China's investment conditions, characteristics and influences, the essay makes some suggestions on the situation that Korean enterprises have to face in China.