An MOU was signed with the government of Yancheng City, China, to start building the ‘Korea-China Industrial Complex,” as agreed between the leaders of Korea and China
- The MOU was signed as a follow-up measure on the agreement to build the DGFEZ↔Yancheng Economic Technical Development Zone in March –
As the level of economic cooperation with China is enhanced in the Daegu-Gyeongbuk region after the signing of the Korea-China FTA, the city joined hands with its counterparts in Yancheng, China to take the lead in realizing the visions of regional economic cooperation. Daegu Metropolitan City and Gyeongbuk Province signed an MOU with the City of Yancheng in China at the Ritz Carlton Hotel on May 26 (Tuesday) to build the ‘Korea-China Industrial Complex.’ The signing ceremony was attended by Yeonchang Kim, the Vice Economic Mayor of Daegu, Nakyong Joo, the Deputy Administrative Governor of Gyeongbuk Province, Secretary Geukgang Joo of Yancheng City, and Gunwoo Do, the commissioner of DGFEZ.
The purpose of the MOU was to support the construction of the Korea-China Industrial Complex, after the establishment of the DGFEZ and the Yancheng Economic Technical Development District. The Korea-China Industrial Complex is a joint economic zone where both countries will actively develop the city, encourage the growth of private companies, and perform administrative roles. It is expected that this complex will be the economic bridge for Korean companies trying to enter Chinese market, while it will also function as the gateway for reverse-exporting their products as ‘Made in Korea.’ Likewise, the economic cooperation will help Korean companies penetrate the global market. The heads of the two countries agreed on the terms of the economic cooperation during the Korea-China summit in July last year. The said terms were then specifically included in the Korea-China FTA Agreement.
Based on the policies of the two countries, Saemangeum, Yancheng, Yanbian and several other cities were named as candidates for the pilot projects. Since Yancheng City, which Beijing recognized as a very likely candidate for one of the projects, has named DGFEZ as a partner, this MOU between the two local governments is expected to further accelerate the progress of the joint efforts to realize theKorea-China Industrial Complex.
Currently, China is the largest trade partner of Korea, while Korea is China’s third largest trade partner. With the FTA in place, many expect that the economic relationship between the two countries would become even closer. Furthermore, China's FDI, which was only 2.7 billion dollars in 2002, has exploded by as much as 40 times to 107.8 billion dollars, making China as the third largest investor in the country, next to the United States and Japan. Under such circumstances, it is anticipated that the Korea-China Industrial Complexwill be a boon for Chinese companies and capital.
Yeonchang Kim, the Vice Economic Mayor of Daegu, said, “With this agreement, which laid the foundation for the cooperation between the local governments, we will endeavour to support the Korea-China Industrial Complex to realize the goals set by the central government for the local governments, and make Daegu-Gyeongbuk a leader for the new era of economic cooperation between China and Korea.”
Deputy Administrative Governor Nakyong Joo also said that “with the “Year of Visiting Daegu” set next year, in 2016, the Daegu and Gyeongbuk governments are closely cooperating to lure Chinese tourists. Moreover, Gyeongbuk is proceeding with its ‘Great Wall Project,’ which aims to attract a million tourists and 3 trillion won of capital from China by the year 2017.” He added, “With the development of the Korea-China Industrial Complex, we will facilitate the infusion of Chinese capital and enhance the competitive advantages of the region.”
Meanwhile, DGFEZ announced that it will commit KIEP to execute a research project in drafting the detailed blueprint of the Korea-China Industrial Complex. Gunwoo Do, the Commissioner of DGFEZ, told reporters, “This research project aims to prepare the specific plans in building the Korea-China Industrial Complex, and to finalize the strategies to attract tenants. We will establish the complex as a model of a 'Regulation Free Zone' to encourage the smooth flow of foreign capital, and persevere to make it a leading project of the government.”
