China and South Korea continues to expand its trade relations as Chinese investments into the South Korean economy reached US$780 million in the first six months of the year, economists said.

The investment figure for the period covering January to June of this year is higher than the US$480 million that China invested into South Korea during the same period of last year.

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KOTRA, a state-funded trade and investment promotion organization operated by the Government of South Korea, revealed that Chinese investors continue to explore investment opportunities in the country.

A KOTRA representative also said that Chinese investments into South Korea has also shifted over the years from real estate to fashion and culture industries.

"China's investment in Korea revolved around the real estate market until the recent past, but the focus is shifting toward the culture and fashion industries these days," a KOTRA representative said.

The representative added that Chinese financial firms have come to South Korea to express their desire to purchase and acquire Korean fashion firms and digital content providers.

Chinese firms are also interested in co-producing movies with South Korean movie companies.

Analysts said China's investment in South Korea will even be expanded further with the establishment of an RMB clearing bank in the country. The South Korean government is also planning to introduce policy changes in order to lure more Chinese investors.

China ranked third in the world in terms of amount of investments in 2013, a global investment market reported.

China's investment reached US$101 billion from US$88 billion between 2012 and 2013 while the United States' investment decreased from US$367 billion to US$338 billion during the same period.

The United Nations Conference on Trade and Development (UNCTAD) recently predicted that China's overseas direct investment (ODI) would exceed foreign direct investment (FDI) in China within two years. 

TagsChina South Korea Investment