Progress ahead

Progress is expected in China and South Korea's cooperation in the service sector while trade in goods between the two has seen brisk increases in recent years.

So far about 85 percent of the 40,000 South Korean enterprises in China are involved in the manufacturing industry, while others are in logistics and services.

More collaboration in service industries will match the development of both sides, He Xiyou, a researcher with Fudan University, was quoted by China Business News as saying.

"South Korean enterprises are turning to hi-tech, energy, transportation and agricultural industries after it got rid of the shadow of the Asian financial crisis in 2002," he said. This trend helps upgrade their business structure and also changed their investment direction.

He added China's access to the World Trade Organization had largely encouraged large-scale South Korean enterprises to invest in China.

During South Korean president Lee Myung-bak's visit to China between May 27 and 30, he also called investors from his country to tap more sectors beyond manufacturing, such as software, finance, information technology and environmental sectors.

Statistics from the Ministry of Commerce shows China's exports to South Korea hit $56.14 billion in 2007, up 26.1 percent from a year earlier while the country's imports from South Korea stood at $103.75 billion, up15.6 percent.

Kim Yaong-gaon, a South Korean businessman working in China, said the two countries enjoy great potential in cooperation in service and finance industries.

Meanwhile, he expected China to fully open its service industry to foreign investors and put forward laws or policies to stimulate investment in this sector.

CBW News

(China Daily 06/23/2008 page6)