This study compares and analyzes the investment characteristics between initial and subsequent investments of firms that have made repeated investments in the Chinese market, and then examines how the influence of variables that affected location choice during initial investment changed during subsequent investment from the perspective of dynamic investment location strategies. The analysis period of this study is 1991–1995, and the sample consists of 225 Korean firms (across all industries) that invested in China on two or more occasions. The independent variables in the multiple regression analysis affecting location decisions included policy factors (preferential measures), market factors (per capita GDP), cost factors (average wage levels), social infrastructure (freight traffic volume), and socio-cultural factors (proportion of ethnic Koreans, i.e., Joseonjok). Poisson regression was used for regional investment counts, and the Tobit model was used for regional investment amounts. The empirical analysis revealed that in the initial investment location choice, socio-cultural factors (proportion of Joseonjok) had the most significant influence, followed by cost factors. However, during reinvestment, the influence of cultural factors such as the proportion of Joseonjok became extremely minimal, while market factors (per capita GDP) and policy factors (preferential measures) exerted relatively greater influence. This reflects the behavior of Korean firms that concentrated their initial investments in northeastern regions such as Jilin and Liaoning provinces—areas with less psychological distance—to minimize the liability of foreignness, but subsequently diversified their investment locations to the North China region (Tianjin) and the Yangtze River Delta region (Shanghai, Jiangsu, Zhejiang), which offer larger markets and stronger policy incentives, based on the local experience and knowledge gained from initial investments.