Yantai aims to become major investment destination for Republic of Korea firms thanks to new industrial park and free trade agreement with the ROK

The China-ROK Yantai Industrial Park is set to become a model project for economic cooperation between China and the Republic of Korea after the signing of the China-ROK Free Trade Agreement in June last year.

According to the FTA, the China-ROK Yantai Industrial Park and the Saemangeum Development Zone in the ROK will be the major destinations for bilateral investment, trade cooperation and information exchanges.

Entrepreneurs from the ROK had moved rapidly to seek development opportunities in the park. During the first five months of this year, a batch of ROK-backed projects had established facilities in the park, bringing the contractual investments from ROK enterprises to $166 million, a year-on-year growth of 143.6 percent, according to the commerce bureau of Yantai. Asiana Airlines Inc is among the ROK firms backing projects in the park.

Zhang Yongxia, mayor of Yantai, said the government will continue to foster an international business environment by streamlining customs clearance procedures and making market access easier for foreign companies.

"We aim to develop the industrial park into the best investment destination in China for South Korean enterprises and the largest distribution center for South Korean goods in China," said Zhang.

Covering 32 square kilometers, the China-ROK Yantai Industrial Park consists of two parts, focusing on bioscience, intelligent manufacturing, auto manufacturing, marine technology and high-end service industries.

The 10-sq-km eastern part is dedicated to the modern service industry while the 22-sq-km western part focuses on advanced manufacturing and port-related industries.

"The park will promote the industrial upgrading of both sides," said Yu Dong, director of the commerce bureau of Yantai.

Lauren Jee-enn of Yantai Luye Bobath Rehabilitation, a joint venture between Luye Medical Group in Yantai and Bobath Memorial Hospital in Seoul, said the Yantai branch, which includes departments of rehabilitation, neurology, traditional Chinese medicine and nursing, has expanded Bobath's business chain.

Yu said Yantai boasts convenient transportation links and solid industrial foundations to promote the park's cooperation with the ROK.

Facing the ROK across the Yellow Sea, Yantai, through its international airport, operates more than 120 flights to and from Inchon and Pusan in the ROK every week, and 13 ships run weekly between the Port of Yantai and major ROK ports including Inchon and Pyeongtaek.

Roughly 50,000 people from the ROK live and work in the city and it has sister city relationships with five ROK cities, including Inchon and Kunsan.

Yantai's pillar industries, such as machinery manufacturing, electronic information and food processing, as well as emerging industries including equipment manufacturing, energy-saving and environment protection, creativity and animation design are in tune with the ROK's industrial structure.

The ROK has developed into Yantai's main foreign trade partner and its largest source of foreign capital and tourists. The city's foreign trade with the ROK reached $11.08 billion last year.

Nine Fortune 500 companies from ROK including LG, Doosan and Hyundai have established branches in Yantai.

"The park aims to become an international-class industrial park that integrates the functions of developing industrial clusters, entrepreneurship and free trade by 2025," said Yu.

To reach this goal, Yantai's government, as well as the Shandong provincial government, has introduced preferential finance, trade, investment and shipping policies to support companies in the park.

The Yantai government has also established a 1 billion yuan ($149.6 million) development fund for the China-ROK Yantai Industrial Park to build infrastructure and support startups and innovations.

Statistics show the park has helped Yantai attract $5.56 billion worth of ROK investments for 3,651 projects, mainly in the construction machinery, auto and other advanced manufacturing industries, as well as the energy-saving and biotechnology sectors.

 

The Yantai China-Republic of Korea ferry vows to boost its services from Yantai to the ROK. Photos By Wang Qian / China Daily

(China Daily 07/13/2016 page12)