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With the world moving faster toward globalization every day,firms are alwaystrying to fmd new ways to stay ahead of the curve and survive in the increasinglycompetitive market,and more and more Korean companies are regarding China as apotential FDI country.This study concentrates on one Korean company’S strugglewith FDI in China and analyzes methods by which they could have improved theirinvestment strategies. Investing in China is the ultimate goal of many companies across world.In thepast twenty-five years,government regulations and market structure have opened upChina to many companies that had never looked at the country as a location for FDI.But now China’S economy is booming like never before creating more openings forsmall companies to expand their businesses.All that is required for a company to takeadvantage of this opportunity is ingenuity,planning,and careful research. In the case ofthe Korean wood industry,many suppliers had made foreign directinvestments in the past in an effort to seek reductions in cost and new outlets for rawmaterials. It has been six years since Dasong,the Korean company highlighted in this study, made their investment in China.This paper will uSe OLI theory and the Diamond model to evaluate the key factors in Dasong’S decision to invest in China.This study will also explore why China would be suitable as the country ofchoice forthe wood industry illustrating how companies can successfully build their competitive advantage in China.As you will see,even though one country as a whole may be suitable for FDI,the choice of cky is just aS important.All factors are critical aSpects ofa company’S investment decision,and I recommend aSsigning point values to them aS a means ofevahation. Hopefully this study will contribute in helping other Korean wood suppliers,who may be looking for a new opportunity though the FDI,in finding the right location for their investment.My approach will attempt to give some practical tips to Korean companies that may choose to invest in China in the near future. Key words:FDI;OLI theory;Diamond Model Location decision;Korean wood supplier