Korean Investment in China at 8-Year Record Last Year

      January 26, 2015 09:59

      Korean investment into China reached an eight-year high last year, according to the Korea International Trade Association on Sunday.

      Korean businesses invested US$3.97 billion in China, up almost 30 percent compared to 2013 and the most since 2006.

      The main reason is that Korean businesses in China are spending more on production facilities there as the Korean economy remains weak.

      Samsung Electronics completed a semiconductor plant in Xi'an last year and invested W2.5 trillion (US$1=W1,084), and LG Display spent around W1 trillion building an LCD panel plant in Guangzhou.

      Moreover, Korean coffee chains Caffé Bene and Twosome Place are spreading all over China and now have more than 1,000 outlets there.

      By contrast Japanese investment in China fell around 39 percent from 2013 to $4.33 billion. Japanese businesses invested over two times more than their Korean counterparts from 2011 to 2013, but the difference narrowed to around $300 million in 2014.

      Choi Yong-min at KITA's Beijing office said, "The Korea-China FTA not only stimulated bilateral economic cooperation but also boosted the interest of Korean businesses in investing in China's consumer market."

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