This investment has various forms, such as sole proprietorship, joint venture with Korean companies, stock investment, etc. It is reported that some Chinese companies have decided to cooperate with South Korea in order to use the many free trade agreements of South Korea to enter the United States, the European Union and ASEAN.
South Korean Minister of Industry Paik Un-gyu attended the roundtable meeting, which was a follow-up to the China-South Korea summit in December last year, when the two countries agreed to promote economic exchanges between the two sides.
Since the summit, investment from China has soared to $1 billion in the first quarter of this year. Last year, due to the Sadr issue, China’s investment in South Korea had fallen by 60% to US$810 million.
Paik stated at the round table that with the tense atmosphere and cooperation atmosphere formed in Northeast Asia, it is a golden period for South Korea and China to expand investment and cooperation.
“The new industries need to jointly develop global standards, joint R&D, and talent exchanges,” he said.
The South Korean Ministry of Science and Technology said that it will support South Korean companies and Chinese companies wishing to set up joint ventures or technical exchanges to perform technology matching.
Data show that last year, foreign direct investment in South Korea grew by 7.7% to US$22 billion. In March this year, South Korea set a target of attracting over 20 billion U.S. dollars of foreign direct investment this year, thus achieving foreign direct investment that has exceeded 20 billion U.S. dollars for four consecutive years.