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A favored destination for S. Korean investors
By Xue Xiaoying (China Daily)
Updated: 2008-04-16 07:30

Kim Jong Ho, president of South Korea's Ka Ju Jewellery Mfy Ltd, did not expect the company's investment in Qingdao to be such a big success.

It has taken only four years for the firm to be able to export its top-grade jewelry to over 10 countries and regions, including the United States and the Middle East, with annual export volume reaching $9 million.

"We are not just an exception among the 100,000 Koreans who currently live in Qingdao," Kim said.

The debut of South Korean investment in Qingdao was marked by the establishment of Qingdao Toptone Electronics Co Ltd in 1989, with an investment of $450,000. South Korea has continued to take the lead among countries and regions investing in the city, according to the Qingdao Bureau of Foreign Trade and Economic Cooperation (BOFTEC).

At present, Qingdao is one of the major investment destinations in China for South Korean enterprises.

By the end of 2007, the city government had approved 9,932 South Korean-invested projects. Their actual investment surpassed $10 billion, accounting for 50 percent of total overseas investment throughout the years.

In 2007 alone, 609 South Korean-funded projects were approved, involving a total contractual investment of $929 million.

Also in 2007, South Korean-funded enterprises realized total sales revenues worth more than 56 billion yuan, paid about 1.7 billion yuan in taxes and created nearly 448,000 jobs.

An increasing amount of South Korean money has come into the hi-tech field during recent years.

"More and more South Korean enterprises are now investing in Qingdao, which has become a model and epitome of economic and trade cooperation between China and South Korea," said Wu Jingjian, vice-mayor of Qingdao.

South Korean investment has developed rapidly in Qingdao in the past 20 years, with the amount invested increasing from $450,000 to more than $10 billion at present.

According to BOFTEC, South Korean-funded enterprises have developed their operations from labor-intensive industries such as food and clothing, to the capital and technology-intensive sectors.

A number of large hi-tech enterprises and famous research institutions in South Korea have invested in Qingdao since 2001, including Pohang Iron&Steel, Kiswire Ltd and LG Communications.

South Korean investors launched 1,412 projects in the city during the past two years, with an actual investment of more than $3.4 billion. These include 52 large projects, each with an investment of more than $10 million.

Qingdao expects to continue to attract South Korean investment, especially in the field of hi-tech and modern services. And the city will strive to create a better living and business environment for investors, Vice-Mayor Wu pledged.

(China Daily 04/16/2008 page12)