South Korea's largest pension fund, the National Pension Service (NPS), has received approval from authorities to invest in Chinese securities.
The company said in a statement that it was the first pension fund in the world to win the qualified foreign institutional investor (QFII) status.
NPS will now be able to trade yuan-denominated mainland stocks and bonds.
The approval comes as South Korean President Lee Myung-bak heads to Beijing on Monday.
NPS is the fourth-largest pension fund in the world.