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Manufacturers, Exporters, Wholesalers - Global trade starts here.
ROK Automakers Optimistic About Co-op with China

Kim So-Rim, executive director of Automobile Manufacturers Association of the Republic of Korea (ROK), expressed his optimism about ROK-China cooperation in the auto industry, hoping that bilateral cooperation could yield better fruits.

Kim made the remarks at the ongoing First China Jilin-Northeast Asia Investment and Trade Expo held in Changchun, capital of northeast China's Jilin Province.

"There are no hurdles and barriers in ROK-China cooperation on the auto industry," Kim said.

He said: "Technology is always the hot issue in the inter-country auto industry cooperation. In order to maintain advantages, some countries will not transfer core technology to others."

"China is similar to the ROK from the perspective of technology, so the auto industry cooperation goes smoothly between the two countries," said Kim, Adding: "We are not afraid that China will master some advanced technology. If China develops well, we will definitely get returns."

In July, the Shanghai Automobile Industry Corporation (SAIC) took over Ssang Yong Motor Co. of ROK and obtained not only the core technology in car engine and transmission, but also key technology of the SUV from Ssang Yong Motor.

Beijing Hyundai, a joint venture between Hyundai Motors, the biggest automaker in the ROK, and Beijing Automobile Industry Holdings, is not simply a car assembly company for Hyundai in China. The ROK auto maker also transferred core technology to the Chinese side, industry insiders said.

A visitor surnamed Pang who once worked in the ROK said Sonata sedans produced by Beijing Hyundai are not car models out of fashion in the ROK. The same brand cars are launched into the market simultaneously in China and the ROK.

"There are not much barriers in Sino-ROK cooperation on the car industry," said Bai Xugui, deputy director of the Jilin provincial government car industry development office.

China's resources and cheap labor are complementary to the ROK, he said.

Kim also said that cooperation of the two sides in researching and developing complete cars and auto parts would benefit the development of the car industries in both countries.

It is predicted that autos manufactured by China, Japan and the ROK is expected to reach 12 million units this year, accounting for 20 percent of the world's total. Northeast Asia is expecting to become a world car manufacturing center.

Statistics from the Chinese side showed that in 2004, the Sino-ROK imports and exports totaled US$90 billion, with bilateral trade volume in the car industry standing at US$2.3 billion.

The five-day exposition, which kicked off on Friday, was co-sponsored by the Ministry of Commerce and the Jilin Provincial Commercial Department.

(Xinhua News Agency September 6, 2005)

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