China has become the second largest country in the world. Especially after China's entry into the World Trade Organization (WTO), its economy has developed rapidly and its political, legal and market norms have gradually become international, attracting more multinational enterprises to China. At the same time, as the global economic environment continues to change and Korean wage levels rise, Korean companies' production costs gradually increase, and Korean companies' investment in China has been active for the past 30 years. China has maintained its position as the largest investment destination for Korean companies. In the process, Korea-China cooperation in trade, investment, and technology, including private investment protection agreements and agreements on the establishment of joint economic, trade and technical cooperation committees, is proceeding rapidly. Since 1988, Korea has invested in China through indirect investment, and since the establishment of diplomatic relations in 1992, direct investment by Korean companies in China has increased rapidly. The reasons for the rapid growth of Korean investment in China include geopolitical factors between Korea and China, complementarity between industrial and technological development stages, China's rapid economic growth, and the Chinese government's consistent foreign investment policy. However, economic exchanges between Korea and China are expected to change considerably in the future. As China's entry into the WTO improves the investment environment, such as opening up new domestic markets, revising direct investment-related laws in existing investment-restricted industries, and liberalizing corporate management, changes in Korean companies' investment strategies are inevitable. Therefore, this paper analyzes the changing process of Korean direct investment in China- Focusing on major investment areas and examines the changes of China's policy of attracting foreign investment before and after China's entry into the WTO. Firstly, it puts forward the theoretical basis and the difference between FDI and its predecessors, secondly, analyze the current situation of major investment countries' investment in China and the FDI policy before and after China's entry into WTO. Thirdly, we will study the trends and characteristics of Korean direct investment in China. Finally, the paper puts forward the possibility and importance of Korean enterprises' direct investment in China to the economic development of the two countries.