Research On Strategies Of Japan And South Korea's Use Of FDI And The Suggestions For China To Expand Investment In Both Countries

With the rapid development of globalization and regional integration, transnational and international investment has become the main form of the world economic and trade cooperation, in which the use of foreign direct investment (FDI) has become an important driving force to promote the development of a country and the region. As the East Asian countries, Japan and South Korea's outward direct investment develop rapidly, but the utilizations of FDI is in a slow step. To revive Japan's continued downturn domestic economy, the Japanese government has formulated a series of guide lines and policies to actively encourage the inflow of FDI. In order to become a strong investment country and response to the challenges of attracting foreign investment policies in other Asian countries South Korea also is beginning to publish plans to attract foreign investment.The article selects Japan and South Korea's utilization of FDI as the research object. Firstly, elaborating the concepts and theory of FDI.Secondly, the paper introduces the status of FDI in Japan and South Korea, Then analyzing strategies of Japan and South Korea's use of FDI, Finally, according to the characteristics of FDI strategies in Japan and South Korea to analyze the opportunities of China's investment in Japan and South KoreaThrough this study, the Japanese FDI scale has volatility but the trend of growth is stable in recent years, South Korea has been in a rapid growth of the scale of FDI, In the matter of investment sources, Asia has become the major source of investment beyond Europe and American, Europe is still the main source of investment in South Korea, but Asia is beginning to increase investment in South Korea. In the matter of investment industry, the Multi-National Corporation mainly invests in the non manufacturing industry in Japan and South Korea. In the industrial distribution, finance, insurance industries are the main industries in Japan; business services, trade, real estate related activities are South Korea's main industries. In investment mode, cross-border mergers and acquisitions (M&A) is the main way to invest in Japan, Green-field investment is the main way to invest in South Korea.The paper analyzes the FDI status from strategic points in Japan and South Korea. Japan's tax incentives and government support strategy reduce the cost of investment, The special economic zone strategy creates a suitable area of the local characteristics of the emerging industries, Japanese government focuses on the attraction of Asian investment strategy to promote Asia's direct investment; Industry oriented strategy promotes investment in high-tech related services, Japanese government has gradually relaxed M&A restrictions to promote the size and speed of the Multi-National Corporation's M&A. The implementation of FDI strategy in Japan has promoted FDI performance index, Japan's FDI performance grows in step with the scale of FDI. South Korea's rental fee reduction and cash support strategy reduces the cost of investment of the Multi-National Corporation, Economic zone strategy improves the business environment and living conditions of foreign investment enterprises, Regional economic integration strategy promotes the region's member countries to the extent of investment; South Korea government actively attracts China's investment strategy, Industry oriented strategy promotes investment in Korea's service industry, South Korea government relaxes the restrictions on M&A strategy for Multi-National Corporation to invest in South korea. Based on the strategy of the South Korea, the South Korea's FDI results shows the rapid rise in the FDI performance index, which shows that the effect of the strategy.In recent years, the Chinese government speeds up the implementation of the strategy of "going out", Chinese FDI continues to grow and the investment scale hit a record high of 123.1 billion in 2014. China, Japan, South Korea, located to each other, close to the economic and trade relations, own great investment facilitation. Choosing the two countries as China's foreign direct investment object has an important practical significance.But at present, Chinese investment scale is so small in Japan and South Korea, The mutual investment is not balanced. How to analyze the Chinese enterprises' direct investment opportunities from the strategic point of the point of Japan and South Korea's FDI strategy, which has important practical significance for China to invest in both countries.