According to financial observers in South Korea, Chinese placements made in local securities skyrocketed in June compared to 54 months ago. Data released today suggested that China's foothold in South Korean securities increased 420%..

Analysts worry however that the South Korea might be depending too much on the Chinese economy.

Chinese investors owned KRW19.8 trillion worth of local bonds and shares, equal to about US$17.7 billion this June. In 2008, only KRW471.1 billion were owned by Chinese investors according to the data provided by South Korea's Financial Supervisory Service. This foothold of the country's securities represents 1.7% of South Korea's gross domestic product (GDP). The GDP is the broadest measure of the economic performance of a nation.

"While the Chinese investment in South Korean assets used to be led by the government, the recent rise is attributable to individual investors," commented researcher Leem Han-na. He said that this amount will decline in the future after the Chinese administration pushes through with allowing individuals to make direct investments in foreign bonds and shares.