South Korea's Direct Investment Research

South Korea is a China's close neighbor and one of the important economic and trade partners who has similar background in culture and history. So communication especially in economic area between the two countries goes actively from ancient times. Since the two countries established their official diplomatic relations in 1992, the ratio of the investment of South Korea in China to its total overseas investment has increased rapidly. Today South Korea has become the third trade target and the third investment source country of China, at the same time China has become South Korea's largest export target country and largest investment target country. But in recent years South Korean enterprises met some serious problems as they invested and operated in China.In this essay firstly reviewed the reasons why South Korean enterprises met problems in recent years; secondly analyzed the circs which Yanbian Korean Nationality Autonomous Region(YKNAR) uses FDI that comes from South Korea with methods like widthway and lengthway compare, metrology and data analysis, etc; and then suggested some advice to YKNAR for the better using FDI in the future. The last part of the essay which wrote about the theory of South Korean FDI to China is the innovative part of the essay which is one of the hot issue in the academe.The conclusion is: Because of the non-rationality in FDI source structure, it made FDI from South Korea not only has been one of the most important capital source in economic development but also has been serious hidden trouble to the security of Yanbian economy. In addition, through the analyzing of FDI Spillover data it reveals that FDI from South Korea has not brought FDI Spillover effect to Yanbian area.