Korea Invests More in China Than
South Korean companies
poured more money into the Chinese market than Japanese and U.S. firms in the
first six months of this year, according to a report by the Korea International
Trade Association (KITA) Tuesday.
South Korea's direct investment in China was $3.52 billion between January
and June, making it the third-largest foreign investor in mainland China after
Hong Kong and the Virgin Islands, the report saidbased on data from the Chinese
The figure represented a 54.4-percent jump from the same period lastyear.
The United States was fourth with $2.95 billion, followed by Japan with an
investment of $2.43 billion, it added.
Japan¡¯s investment in China grew by 6.9 percent and the U.S¡¯s by3.8 percent
in the January -June period this year.
``Given that Hong Kong and the Virgin Islands are leading tax
havendesignations, South Korea might be the de facto largest foreign investor in
China in that period,¡¯¡¯ the report pointed out.
``This also proves a growing number of Korean firms are escaping overseas in
pursuit of lower costs.¡¯¡¯The agency found that nearly four in 10 overseas South
Korean companies had operations in China as of the end of June.
The number of Korean firms doing business overseas (overseas branches of a
Korean firm included) reached 6,623 as of the end of June, among which 2,888
firms, or 43.6 percent are doing business in China. The report showed foreign
direct investment in China rose 15 percentfrom a year ago to $38.4 billion in
the seven months through July. By Seo Jee-yeon /
(Korea Times 2004-8-24)