A Study On The Korea Companies Foreign Direct Investment In China

China has the population of 1.3 billion people and a huge land resurce which is almost 100 times of Korea. China made a great achievement by using direct investment and obtained the biggest sum of it among the Developing Countries in straight eight years after the adoption of the reformation and opening policy, especially after 1990’s. With the implementation of the reform and opening to the outside world in 1978, China has become a country that supplys low salary, cheap raw material and abundant workforces. At that time, Korean corporation could just invest in Hong Kong and expatriates. After 1992, the two countries conducted foreign affairs and began to sign a series of trade agreements such as the investment protection agreement and the small-scale relief measures such as investment risk agreement. Recently, the Chinese government announced that the foreign investment is the major factor of domestic imbalance between industrial fields and regions. With the expansion of the need of nationwide market, the investment of Korean enterprises in China will increase dramatically.The purpose of this dissertation is to analyse Korean enterprise business activities and problems in China. The specific object of this research is to analyse empirically the characteristics, motives, problems and bottlenecks relevant to entry process of Korean enterprises in China.China welcomes foreign corporation and firms that to undertake various kinds of investment and economic cooperation. With the rapid development of Chinese economy and the expansion of consumer market, Korean enterprises are increasing investment in China and trying their best to expand in the Chinese market. But recently with the changes of Chinese policies of foreign investment, the environment of investment deteriorated.In order to prepare the basis for Korean companies to take off in the Chinese market that expands to core axis of the international economy, Korean companies should make continuous studies on China and the changes in the Chinese market.Corresponding to these problems, some strategies are suggested in this paper.