Stock Trading and Other Things

Trade is the backbone of Korea China ties

Summary: Korea and China have a long and colorful history that dates back over 5 000 years and bilateral trade between the two has deepened their relationship over time Given the growing prospect that the two countries will one day engage in a free trade pact some say that trade will be the biggest defining factor in their relationship in the future According to the Korea International Trade Association bilateral trade between Korea and China has increased rapidly since the two countries opened formal diplomatic ties in 1992 Trade between the two has risen so quickly that China has been Korea s biggest trading partner for years The volume of trade between the two countries increased 22 times from $6 38 billion in 1992 to $140 95 billion in 2009 The two countries are planning to increase bilateral trade to $200 billion by 2012 to mark the 20th anniversary of official diplomatic relations between them Last year Korea s exports to and imports from China were $86 7 billion and $54 25 billion accounting for 23 9 percent and 16 8 percent respectively of Korea s total exports and imports that year In 1991 the figure was only 1 4 percent for exports and 4 2 percent for imports Korea s trade surplus with China has also risen sharply It accounted for 80 2 percent of Korea s overall trade surplus last year As the two countries improve their trade relations more companies from both countries have made cross border investments Data from the National Tax Service released earlier this year showed that the number of Chinese companies doing business in Korea grew from 118 in 1998 to 445 in 2008 That s a growth rate of 380 percent which outpaces the growth rate for companies from other countries During the same period the number of foreign companies in Korea rose 2 2 times from 3 655 to 8 162 To represent Chinese companies the Chinese Chamber of Commerce in Korea was established in 2001 According to Yu Biao a CCCK representative Chinese companies invest in Korea because it has access to other major markets overseas For Chinese companies and manufacturing companies in particular the biggest benefit of doing business in Korea is that it makes it easier to trade with Europe or the United States he said referring to the fact that there are fewer regulations and lower trade barriers in Korea The China Construction Bank which opened a branch in Seoul in February 2004 is one of six Chinese banks in Korea With 2 trillion won $1 64 billion in assets the bank s Seoul branch provides financial services including remittances for Chinese or Chines Koreans living in Korea or Koreans in China The growing number of trade and economic transactions between Korea and China has led to substantial growth of the China Construction Bank s Seoul branch said Li Biao its general manager Meanwhile there are approximately 10 Chinese or Korean Chinese shipping companies doing business in Korea Da in Ferry is a joint venture between a Korean and Chinese firm It carries 60 000 to 70 000 Korean and Chinese passengers annually according to the company Na Won geun the head of the company s business planning team said he expects the business to grow thanks to the development of bilateral ties between Korea and China A majority of Chinese companies in Korea however are still service or financial firms partly because labor costs are much higher here than they are in China That has created an imbalance in the cross border investments made by the two countries To attract greater investment from China the Korea Trade Investment Promotion Agency launched the China Desk which promotes Chinese investment in Korea in May Experts said the Korea China FTA will encourage Korean companies to make inroads into China but not vice versa The tariff on Chinese products is already very low so even if it became zero it is not likely to encourage Chinese companies to come to Korea said Song Chang eui general director of the Korea International Trade Association To attract more Chinese companies Song said Korea needs to restructure its industries Korean industries such as the auto steel and chemical industries are still more advanced than China s but China is quickly catching up he said Korea needs to focus on fostering new industries Then more Chinese companies will come here and want to produce products under the Korean brand he said Li of the China Construction Bank s Seoul Branch recommended more tax breaks be given along with more amenities for foreigners to bring more Chinese companies to Korea By Moon Gwang lip joe joongang co kr Copyrights ? JoongangIlbo Joins com All rights reserved Korea and China have a long and colorful history that dates back over 5 000 years and bilateral trade between the two has deepened their relationship over time Given the growing prospect that the two countries will one day engage in a free trade pact some say that trade will be the biggest defining factor in their relationship in the future According to the Korea International Trade Association bilateral trade between Korea and China has increased rapidly since the two countries opened formal diplomatic ties in 1992 Trade between the two has risen so quickly that China has been Korea s biggest trading partner for years The volume of trade between the two countries increased 22 times from $6 38 billion in 1992 to $140 95 billion in 2009 The two countries are planning to increase bilateral trade to $200 billion by 2012 to mark the 20th anniversary of official diplomatic relations between them Last year Korea s exports to and imports from China were $86 7 billion and $54 25 billion accounting for 23 9 percent and 16 8 percent respectively of Korea s total exports and imports that year In 1991 the figure was only 1 4 percent for exports and 4 2 percent for imports Korea s trade surplus with China has also risen sharply It accounted for 80 2 percent of Korea s overall trade surplus last year As the two countries improve their trade relations more companies from both countries have made cross border investments Data from the National Tax Service released earlier this year showed that the number of Chinese companies doing business in Korea grew from 118 in 1998 to 445 in 2008 That s a growth rate of 380 percent which outpaces the growth rate for companies from other countries During the same period the number of foreign companies in Korea rose 2 2 times from 3 655 to 8 162 To represent Chinese companies the Chinese Chamber of Commerce in Korea was established in 2001 According to Yu Biao a CCCK representative Chinese companies invest in Korea because it has access to other major markets overseas For Chinese companies and manufacturing companies in particular the biggest benefit of doing business in Korea is that it makes it easier to trade with Europe or the United States he said referring to the fact that there are fewer regulations and lower trade barriers in Korea The China Construction Bank which opened a branch in Seoul in February 2004 is one of six Chinese banks in Korea With 2 trillion won $1 64 billion in assets the bank s Seoul branch provides financial services including remittances for Chinese or Chines Koreans living in Korea or Koreans in China The growing number of trade and economic transactions between Korea and China has led to substantial growth of the China Construction Bank s Seoul branch said Li Biao its general manager Meanwhile there are approximately 10 Chinese or Korean Chinese shipping companies doing business in Korea Da in Ferry is a joint venture between a Korean and Chinese firm It carries 60 000 to 70 000 Korean and Chinese passengers annually according to the company Na Won geun the head of the company s business planning team said he expects the business to grow thanks to the development of bilateral ties between Korea and China A majority of Chinese companies in Korea however are still service or financial firms partly because labor costs are much higher here than they are in China That has created an imbalance in the cross border investments made by the two countries To attract greater investment from China the Korea Trade Investment Promotion Agency launched the China Desk which promotes Chinese investment in Korea in May Experts said the Korea China FTA will encourage Korean companies to make inroads into China but not vice versa The tariff on Chinese products is already very low so even if it became zero it is not likely to encourage Chinese companies to come to Korea said Song Chang eui general director of the Korea International Trade Association To attract more Chinese companies Song said Korea needs to restructure its industries Korean industries such as the auto steel and chemical industries are still more advanced than China s but China is quickly catching up he said Korea needs to focus on fostering new industries Then more Chinese companies will come here and want to produce products under the Korean brand he said Li of the China Construction Bank s Seoul Branch recommended more tax breaks be given along with more amenities for foreigners to bring more Chinese companies to Korea By Moon Gwang lip joe joongang co kr Copyrights ? JoongangIlbo Joins com All rights reserved

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