China is a main market of South Korean investment in Asian region. Meanwhile, in China, Korean investment is mainly focused in Shandong, Liaoning and Jilin Provinces. Since South Korea is the world's fourth largest textile-producing country. To reduce costs and facilitate exports, Korean textile and garment enterprises have set up factories in foreign countries, with 80 percent of overseas investments in Asia.

In recent years, due to cheaper labor advantages and preferential investment policies, Vietnam is emerging as a hot area of South Korean investment. Sales of Korean textiles are mainly in low and mid-end products.

However, because the policy orientation and other factors, South Korea is still a major market for Chinese textile and apparel exports.

The data of second half 2006 showed that China's textile and garment exports to South Korea still ranked within top markets, and posted a stable and rising trend, although behind the US, Europe and Japan.

From June through October of 2006, China’s exports to South Korea amounted to US $377 million and $383 million, $476 million, $548 million and $539 million, representing a sable increase and gently rising trend.