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Business / Economy

S. Korean firms boom in China

(chinadaily.com.cn) Updated: 2014-07-04 16:43

S. Korean firms boom in China
ROK's direct investment in China (2003-2013), Source: National Bureau of Statistics

Twenty years after China and Republic of Korea established diplomatic ties, enterprises from ROK see their business booming in China, and some even regard China as their second home market, China Business News reported Friday.

Statistics show that ROK enterprises' accumulated direct investment in China has topped $50 billion, compared with China's $480 million direct investment in ROK, according to the report.

China exported 107.43 billion worth of machinery and electronic products to ROK in 2013, while its imports from ROK on this subject was worth $211.19 billion, according to China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCMB).

Hardware companies from China and ROK are competing in this arena, said Gao Shiwang, vice-secretary of CCCMB told the newspaper.

China is the most important market for Samsung. It will surpass the US to be the world's largest consumer electronics market. Boo-keun Yoon, Co-CEO of Samsung Electronics Co Ltd, said at the Samsung Forum 2014.

Samsung Electronics ploughed 150 billion yuan in China, up 80 percent year-on-year, the report said.

Samsung started to establish joint ventures in China in 1992, the same year when China and ROK established diplomatic ties. As of the end of 2013, Samsung has set up 161 subsidiaries in China, including 38 factories, 45 sales companies, and 10 research institutes, it said.

It offers jobs to 124,000 in China while pay 31.9 billion yuan in tax in total, according to the report.

A Samsung Electronics Ltd memory chip project that cost $7 billion began operations in Xi'an, Shaanxi province in May 2014.

Another ROK business giant, LG, formed its first production entity in China in 1993, and incorporated LG Electronics China Co Ltd in 1995.

In an article titled “China, future of ROK enterprises" on LG's China website, LG states to adopt the differential strategy by offering specialized products for the Chinese market.

Chinese President Xi Jinping began his two-day visit to ROK on July 3.

More than 250 Chinese business leaders joined the tour, including head of China's tech giants, such as Jack Ma, founder of Alibaba, and Robin Li, founder and CEO of Nasdaq-listed Baidu.

It would offer a great opportunity for cooperation among hardware companies in the two countries, Gao said.

S. Korean firms boom in China

S. Korean firms boom in China

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