South Korean Investment In China In Technology Transfer

With the rapid development of the world's scientific and technological revolution, technical factor is becoming more and more importent in today's international competition.Refer to economic development, almost all the developed countries focus on research, development and industrialization of high technology. Therefore, we can say that today's competition in the international market is to a large extent a competition of technical level, only master the technology of high ground that one country can gain the advantageous position in the competition. So,developed countries have to transfer its technology to developing countries in order to maintain its technological dominance,so they can reduce production and operating costs, and obtain greater profits.Multinational companies carry advanced technology and have being always developing cutting-edge technology,meanwhile,they play a main role in technology transfer and technology diffusion in the world. At this stage,as technical is becoming a prerequisite of Foreign Direct Investment, so in general, foreign direct investment and technology transfer are accompanied.In the era of economic globalization,the international direct investment has developed rapidly. As China's neighbor, South Korea is increasing emphasis on the rise of economic power of China,and in the same time, increasing the intensity of investment to China. With the increasing investment from South Korea to China, technology transfer to China is also increasing. Because the characteristics of multinational corporations is pursuing profit maximization, leading to the result of that, though a part of technology is transfered to China, but the greater part of these technology is second-rate technology which has been standardized,and the really advanced and core technology is still in the hands of Korean enterprises firmly.Besides these,they also carry out strict control on this shift through a variety of ways to prevent leakage of the core technologies to China. As a result, the spillover effect of the transferred technology is inhibited.This paper is based on the international direct investment and international technology transfer theory, beginning with the current status and characteristics of South Korea's investment in China, analysis the spillover effects of Korea's investment and technology transfer and effect of other aspects of China in-depth.Pointed out that South Korea's investment with technology transfer to China has not produce tangible role in promoting the Chinese economy, industrial structure and technological capacity. Korean investment does not mean that it's our own skills.We should look upon the Korean capital properly and try our best to use it fullly and effectively.In the era of knowledge economy,we can only rely on independent innovation to achieve technology leap.