China And The Rok Mutual Investment Trend Analysis And Countermeasure Selection

After the 1990s, the importance of international direct investment becomes more and more obvious in the cooperation of bilateral economy along with the increasing globalization economy. With the accelerating economy and more advanced innovation, China, as a new developing country, is attracting more and more foreign companies and investors, and the mushroom domestic investment also expands external direct investment positively, meanwhile Korea is also searching the opportunity of external direct investment as the most developed country in Asia. Korea started to invest in China in 1985, it goes fast despite of the only 20 years history. Korean has already exceeded the countries and areas which invest most in China such as Europe, America, and Japan. The entry of Korean investment accelerates the form of capital in China at a certain extend, provides more job opportunities, contributes a lot to maintain the balance in trade and increase the financial income. In one word, it is beneficial to the development of our economy.This article analyses the changes when Korea invests in China in the aspect of total invest sum, area distribution, project scale, invest fields; discusses the main change trend and the future developing direction. It also analyses the reasons that Korea enters the Chinese market in the views of international investment theories and the fact complexion of these two countries.Compared with the rapid growth of Korea investment in China, China's direct investment to Korea initiates later and slower. The investment in Korea is very limited in both scale and area, and doesn't have the enough influence. It still has a huge developing space in future. This article also includes the development aiming at how to promote Chinese investment in Korea.Besides the analysis of investment in each country between China and Korea, this article compares the investment between China and Korea with the investment between China and some developed countries like Europe, America, and Japan. As well as compares the differences between our country's investment to Korea and Korean attracting foreign investment. We can get a conclusion from these comparisons that there are many important problems in the status of the interacted investment between China and Korea. The main problems are the scale of the Korean companies invests in our country, the transfer of the techniques, the use of localization strategy, and the managing strategy of Korean companies themselves.Furthermore, the rapid development of Korean companies brings competitive pressure to the domestic enterprises. Against this kind of problem, combining the future possible factors that may influence the interact investment, this article emphasizes on strategies to improve our country's main investment environment, increase the investment to Korea from China, as well as the strategies of countermeasure in domestic. Meanwhile this article gives many suggestions on how to help Korean enterprises shape up in China aiming at the managing status of the Korean companies in China.