When Korea and China finally started diplomatic relations in 1992, Beijing was flooded with products labeled "made in Japan." Eighteen years later, the Chinese capital has turned into a showroom for Korean products.

The best corners of giant electronics stores such as Guomei and Suning are filled with TV sets, mobile phones and refrigerators made by Samsung and LG Electronics. Korean-made cars line the streets, competing head to head with their Japanese rivals.

Korea and China mark 18 years of diplomatic ties on Tuesday and many feel that the relationship has led to a win-win situation for both sides. Korea benefits from access to the massive Chinese market and cheap labor, while China can take advantage of Korean investment and development experience.

◆ Trade and Tourism Growth

In 1992, Korean investments in China was just 1/40 the amount of Japanese investment, which totaled US$8 billion. Japan had a headstart with investment dating back to 1979, when Beijing started opening its market. But as of the end of 2009, Korean investment into China was US$44.6 billion, just $24.9 billion shy of Japan. And in 2008, Korea overtook Japan with investment in China of $4.4 billion, while the island country's for the year was $3.7 billion.

Bilateral trade surged 22-fold over the past 18 years, from $6.38 billion to $140.9 billion, and is expected to surpass $170 billion this year. Korea's exports to China last year amounted to $102.5 billion, compared to Japan's $130.9 billion.

The number of visitors from both sides also increased. Last year, 3.2 million Koreans visited China, an 80-fold increase compared to 1992. A total of 67,000 Koreans study in China, while 63,000 Chinese study in Korea. Yu Woo-ik, Korea's ambassador to China, told reporters recently, "It would probably be difficult to find a case anywhere in the world where people-to-people exchanges between two countries grew at such a rate."

◆ Problems

But there were dark moments as well. Seoul and Beijing experienced diplomatic friction in 2000 after Korea slapped high tariffs on Chinese garlic imports. And in 2004, problems resurfaced in a dispute over the historical sovereignty of the ancient Koguryo Kingdom.

This year, Seoul and Beijing clashed diplomatically over the handling of the sinking of the Korean Navy corvette Cheonan. But experts in Korea-China relations say both sides can resolve diplomatic problems through active communication.