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According to Yonhap News,

Korean Companies’ Entry into Chinese Market and High-tech Industries Discussed in CEO Roundtable Meeting in Beijing

(SEOUL=Yonhap News) The business leaders of Korea and China gathered to discuss cooperation in China’s Smart City initiatives and its service industries such as finance, tourism and logistics.

More than 50 business leaders from Korea and China attended the ‘Korea-China CEO Round-table Meeting 2013’ held at the Beijing World China Hotel on Nov. 16 hosted by the Federation of Korean Industries (FKI), and discussed Korean companies’ entry into the Chinese domestic market and high-tech industry.

The meeting was held on the sidelines of the ‘6th Global CEO Round-table Meeting’ hosted by the Chinese government, which was participated by global companies’ CEOs and high-ranking Chinese officials such as member of the secretariat of the CPC Central Committee Du Qinglin, State Council member Wang Yong, and Commerce Minister Gao Hucheng.

Park Sam-Koo, President of Korea’s Kumho Asiana Group, chaired the CEO Round-table and said in his opening address that “During the past 35 years of reform and opening up, China’s economic growth has been led by trade and investment. However, in the future, the domestic market and high value-added and high-tech industries should lead the Chinese economy’s growth.” and suggested that China and Korea strengthen cooperation in these areas.

He added that “China’s strategies to develop new industries such as new & renewable energy, next-generation IT and bio technology pose a new business opportunity for Korean companies.” and said that “Because China is pursuing a ‘creative economy’ as well, I suggest that Korea and China cooperate in the global market by converging their competitive technologies and ideas.”

In the meeting, cooperation in China’s Smart City initiatives and the tourism industry was also discussed.

Han Ji-won, head of LG CNS’s China business, said that “Because China is constructing ‘Smart Cities’ as part of its new urbanization policies, we expect that many Korean companies in telecommunications equipment and transportation systems will have the chance to take part in the construction projects.”

President Park Sang-hwan of Hanatour suggested the need to ease Korea’s visa policies. He cited the example of how Jeju Island saw a dramatic increase in Chinese tourists after the visa exemption policy, and urged the government to expand the internet visa application and arrival visa system to tourist visas.

Seung-Cheol Lee, Vice Chairman of FKI, pointed out that Korean companies are faced with growing difficulties in China due to the overall deterioration in the investment environment such as rising wages and reduction of incentives for foreign-invested companies.

He cited an example of a Korean company, whose merger plan with other Korean companies in China was put on hold due to procedural problems and the Chinese local government’s lack of support.

Mr. Lee also asked for the Chinese government’s support for Korean construction companies. When Korean construction companies apply for a construction permit in China, the evaluation criteria only considers the construction projects that the companies took part in China. In this regard, Mr. Lee asked China to include construction projects in Korea and overseas as well in the evaluation criteria.

jooho@yna.co.kr

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