Cross-border investment between South Korea and China has risen sharply this year, fanned by the Korea-China free trade agreement, which took effect in December 2015, industry data showed Tuesday.

According to the Kora International Trade Association, South Korean entities invested $2.2 billion in China during the first five months of the year. The figure is 12.2 percent higher than that recorded during the same period last year.

At the rate recorded in the January-May period, South Korean investment in China throughout the year is estimated to reach $5.3 billion. In comparison, Japanese entities invested $1.47 billion in China during the first five months of the year.