The China-Korea Yantai Industrial Complex was constructed as two core areas and two expanded areas over a total area of 80.4㎢. In the core areas, smart manufacturing, logistics and new energy sectors are concentrated, while expansion areas are concentrated with life sciences, biotechnology and medical fields. Besides, it will actively build cooperation with Korean companies in various fields such as finance, e-commerce, and entertainment on the strength of the policy of the State Council of the People’s Republic of China.
|▲ Dailing Zhang, Vice Mayor of Yantai, China|
|▲ Ho-yeol Bae, Director of Investment Strategy, Korea Agency for Saemangeum Development and Investment|
|▲ Jinsheng Gu, Minister-Counsellor of Economic and Commercial Counsellor’s Office, Embassy of the People's Republic of China in the Republic of Korea|
“Yantai Industrial Complex is a significant strategic hub for economic cooperation between China and Korea. In the future, we will devote our utmost efforts to make the industrial complex the cornerstone of the economic development of two countries by attracting companies and talents through active policy support and benefits,” said Zhang Dailing, Vice Mayor of Yantai, China.
“While Chinese VIPs were visiting the Saemangeum site, there was an in-depth discussion about exchanging more actively between the two countries. I believe the active exchange since last year has become a stepping stone to devising a win-win strategy,” said Ho-yeol Bae, Director of Investment Strategy, Korea Agency for Saemangeum Development and Investment.
“The Embassy will make efforts to realize the Xiaokang(Moderately prosperous) Society and the Chinese Dream. We will do our best for the idea of ‘Benefit all Mankind(人类共同)’ by carrying out the reform and opening up according to the ideology of the general secretary Xi Jinping(習近平). The two countries are neighboring countries facing the sea, and have achieved rapid overall achievement over the past two decades. It has achieved a lot of accomplishments with wider human exchanges. On the other hand, trade protectionism is worsening in the world and uncertainty is growing. In the midst of this, complementary characteristics between China and South Korea are emerging. We look forward to substantial cooperation in each area and hope to have more benefits for the people of both countries,” Gu Jinsheng(谷金生), Minister-Counsellor of Economic and Commercial Counsellor’s Office, Embassy of the People's Republic of China in the Republic of Korea.
|▲ The plan to accelerate growth of Industrial Complex focused on by the Chinese government and Yantai city government was introduced.|
|▲ The specialization strategy of the development zone was introduced to the representatives from Korean companies.|
|▲ Major projects of ‘One Belt One Road’ in the expanded zone were introduced.|
Taking this opportunity, Korean companies’ entry into China is expected to be more active. If a Korean company moves into an industrial complex, it will receive a subsidy for renting industrial parks and expanding factories. There are also institutional benefits such as tax breaks and visa exemption (for maximum 144 hours). It is expected that Korean companies will capture the fast-growing Chinese domestic market and secure an economic growth engine.
At the presentation, five policies for Korean companies were announced; subsidies, substantial use of land, strengthening tax support, active attracting of talented people, and providing trade and administrative support. It is expected to further boost the value of the industrial complex, which has a strategic position with the two zones and one base, including the demonstration zone, precedent zone, and new development base. In 2018, 66 new Korean projects were launched with a total value of $210 million and recorded the total turnover of about $7.47 billion (RMB 50 billion). Likewise, the upward trend in China since 2019 is expected.
In particular, the Industrial Complex said they will attract more than 100 Korean companies by 2025 and will invest a total of $2 billion in these companies.
Meanwhile, the Industrial Complex was established in December 2017 to explore economic cooperation between Korea and China on the basis of the Korea-China FTA agreement that entered into force in December 2015. The complex has settled down as an important base of the policy of Xi Jinping’s ‘One Belt One Road(一帶一路)’ and a bridgehead of entering China, Korea’s number one trading partner.