"In the first nine months of this year, China's direct investment in South Korea increased by 25.7% year-on-year, reaching 5.09 billion U.S. dollars. Most of these investments will be invested in the materials, parts and equipment industries.

According to Korean media businesskorea, although the growth rate of China's investment in South Korea is lower than that of the EU (173.2%) and Japan (33.8%), it is different from other regions in that it has shown a growth trend for three consecutive years. Last year, the United States, Japan, and the European Union reduced their investment in South Korea, but investment from China increased by 26.5%.

According to industry insiders, China's investment focus is on the semiconductor and display industries, and most of its investment in South Korea is concentrated in materials, parts and equipment. An analyst said: ""During this period, industrial investment from China totaled US$2.349 billion, an increase of 10.4% year-on-year.""

But at the same time, industry insiders are worried about the inflow of Chinese capital. Many Korean fabless companies are already under the control of Chinese capital. For example, Dosilicon currently holds the largest share of memory chip developer Fidelix. Eswin acquired OLED semiconductor manufacturer WideChips in 2017. Silicon Micro Technology is the largest shareholder of mobile power chip manufacturer Silicon Mitus.

The Korea Institute for International Economic Policy stated: “As the United States and the European Union try to control China’s semiconductor industry, China’s investment in South Korea is likely to continue to increase.”"