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According to Yonhap News,
(SEOUL=Yonhap News) Chinese companies that came to Korea seeking investment opportunities following the visit of Chinese President Xi Jinping have shown great interest in real estate and Korean Wave contents.
They have introduced detailed action plans for investment based on the market competitiveness of Korean industries and ever-tightening diplomatic ties between Korea and China.
KOTRA held a conference on the investment environment of Korea for 123 Chinese business leaders on July 3 at its Seoul headquarters, which was followed by a press interview with four Chinese business leaders.
"We are investing in real estate in Jeju Island with the Korean government’,” said the CEO of a leading real estate company in China at the interview, adding that the growing diplomatic ties between China and Korea have become a growth engine for investment. In other words, friendly relations between the governments helped boost the private sector.
He also added that it was helpful for KOTRA to sending an employee to China to resolve issues related to the real estate investment agreement.
As to whether China’s aggressive real estate investment in Korea would be negative for Koreans, he said, “We do not mind the fact that there are a lot of Koreans in Wangjing. Likewise, it should not be an issue with Koreans, as our investment in Jeju Island will benefit Jeju Island the most.”
Vice President Song Yao, of Shimao Property Holdings Ltd., said, “Our business is in 30 cities in China and we are planning to invest in real estate in Korea, including Jeju Island.”
“We are also considering Malaysia and the U.K for investment, but we are most interested in Korea,” she said.
Some companies were highly interested in the cultural contents of the Korean Wave. The art director of a cultural contents company said it plans to make a joint investment, considering the popularity of Korean TV dramas in China.
“The recognition in China is that the TV dramas and contents of Korea are better than that of China,” he said. “Even high-ranking officials are studying Korean TV programs.”
The CEO of Haining China Leather City Co., Ltd said, "We are a listed company in China and we hope to cooperate with a Korean company with advanced manufacturing technology. We plan to establish a large-scale shopping mall in Korea. "
Invest KOREA Commissioner Kiwon Han, who was also at the interview, said Chinese companies are mainly interested in real estate, cultural contents and software.
“The three sectors can not only easily generate profit, but also make good use of the technology or brand power of Korean companies through mergers and acquisitions,” he said. “Foreign manufacturers in China already account for about 40 percent of the Chinese GDP. Therefore, Chinese companies are unlikely to invest in the Korean manufacturing industry.”
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Source: Yonhap News (July. 03, 2014)
** This article was translated from the Korean.