Considering the structures of trade and investments(both of FDI and ODI(out-bound investment)) between Korea and China, liberalizations of investments and services are very important issues of Korea-China FTA. China is important to Korean enterprises not only as a major investment partner but also the biggest target of domestic market. In special, lowering the barriers to investments became more important tasks as speed up of the ‘transformation from the workplace to the marketplace of the world’.
But, in real, barriers to investments had been one of the regular issues pointed out by lots of conutries including Korea. FDI limitation and limitation on ratio of share by classified industry, performance requirement had been a typical example. In addition, there are lots of differences on existing FTAs of two countries concerning the chapter of investment including the scope and coverge, national treatment, minimum standard of treatments, performance requirements, senior management and board of directors, non-conforming Measures, ISD.
It is important to set-up of negotiation points in Korea-China FTA negotiation. For example, four points of issues should be added from the point of view of Korea; ①addition of the linked regulations on investments-services concerning the scope and coverge, ②minimization of non-conforming measures(that is, the Negative-lists system), ③addition of minimum standard of treatments for protect investers, ④addition of regulations for limit the performance requirements. Most of all, it is need for more endeavors for expanded investment liberalization. In this regards, the most important thing to Korean parts is addition of the national treatment regulation on establishment stage(admission) of FDI.