Purpose - This paper aims to verify whether the Fisher effect and the international Fisher effect are significant between China and South Korea in the long and short run, respectively.
Research design, data, and methodology - The annual and monthly data, respectively, are employed to conduct an empirical estimation under the fully modified ordinary least squares(FMOLS). The nominal interest rate is treated as an independent variable. The inflation rate is treated as a dependent variable.
Results - The results exhibit whenever in the long or short run, the Fisher effect exists in China and South Korea. However, the Fisher effect in South Korea is more significant than that of in China. Meanwhile, an empirical analysis is also preformed to investigate the long-run and the short-run international Fisher effect between China and South Korea. The deviation from the equilibrium relationship is that the commodity market and the Financial market have started to integrate in China. But China’s integrated level proved to be relatively lower.
Conclusions - To exploit that the Fisher effect and the international Fisher effect hold between China and South Korea can help both countries deal with the sufferings from integration of the commodity market and the financial market.

Abstract
 1. Introduction
 2. Literature Review
 3. Theoretical Framework
  3.1. Model
  3.2. Variable Description
  3.3. Figure Description
 4. Empirical Analysis
  4.1. Unit Root Test
  4.2. Long-run Fisher Effect
  4.3. Short-run Fisher Effect
 5. Conclusion
 References

• Yugang He(Department of International Trade, Chonbuk National University)