Korean companies¡¯ investment in facilities in China cost 134,000 people here their jobs over the last 10 years, analysis shows.

The Federation of Korean Industries¡¯ Korea Economic Research Institute (KERI) said in a report published Monday that after Korea and China normalized diplomatic ties in 1992, the number of people who lost their jobs every year between 1993 and 1997 rose from 600 to 5,000. But since 1998 the rise has been much steeper, reaching 44,600 in 2003, the report said.

A total of W50 billion (about US$50 million) in investment flowed from Korea to China from 1993 to 2003.

KERI called on the government to nurture a knowledge-based service industry and new manufacturing sectors with growth potential, and improve the investment environment for foreign businesses to offset the loss of jobs to China.

The institute warned of more job losses from increasing Korean investment in the world¡¯s most populous country.