Study Of South Korean Investment In China

As its fast economic development, China's Mainland has already become the most important place for overseas investment of South Korean enterprise. Since the two countries established their official diplomatic relations in 1992, the ratio of the investment of South Korea in China main land to its total overseas investment has increased swiftly from 9.8% in 1992 to 66.3% in 1997, but afterwards dropped slightly to 45% in 2001. These data indicate that China has become one of the best investment target country of South Korea, and on the other hand that South Korean enterprises met some difficulties recently as they invested and operated in China. However, China has rich natural resources and low cost of labor, furthermore, China has already become the member of WTO and will hold the Olympic Games in 2008, and also China has been improving its infrastructures and realizing its strategy of western area development. All these show that China has enormous attraction for the foreign investment in the future. Therefore it is worthy to study the possibility in foreign investors, especially the enterprises from South Korea expanding their investments in China. The purpose of this paper is to observe the current situation of South Korean investments in China, to analyze the difficulties and problems encountered by the enterprises in their investments, and to search for more effective ways to improve the investments, finally we try to show some of the prospects for South Korea's investment in China.According to the above, we firstly in chapter one introduce the investment concept and theory of South Korea in order to make preparation for the following discussion. Then, in chapter two we discuss the overall states of foreign investment in China, including the source of FDI, and the investment in different industries and districts, etc.. On the basis of this, we introduce in chapter three the state of investment to China of South Korean enterprise, and make comparison with other countries that also invest in China. In chapter four we get some successful experiences of South Korea enterprises investing and operating in China, the existing problems the enterprises meet, and make some suggestions and prospects for the further development of South Korean investment to China.