Employees of Beijing Hyundai have been preparing busily in the auto company's factory and offices for the July 7 arrival in China of President Roh Moo-hyun of the Republic of Korea (ROK).
The Sino-ROK joint venture holds the record for the fastest factory establishment and production of the first 10,000 cars.
Meanwhile, the LG Electron Group is erecting a building along Beijing's main Chang'an Avenue, and Samsung mobiles and the SK telecom service have weaved a huge web around China.
The number of ROK enterprises in China has increased dramatically since bilateral relations were established over 10 years ago. According to the latest statistics from the ROK business council in Beijing, its member companies outnumbered 2,000 so far.
Direct flights between the two countries increased by 300 percent and flight routes grew nearly 500 percent in China in the past nine years. The average annual 30 percent increase in passenger capacity was a good reflection of bilateral economic exchanges, said H.O. Shin, a senior official with Korean Air in China.
Moving their regional headquarters and research and development centers from the ROK to China was a common choice for many ROK enterprises. Korean Air moved its Chinese headquarters from Seoul to Beijing last year. Its employees in China now number 150.
LG aims for its Beijing building to be a masterpiece similar what it has in Seoul. It will be put into use after 2005 as another global manufacturing base for the multinational company.
LG China President No Yong-Ak said China's entry into the World Trade Organization and the hosting of 2008 Olympic Games will provide a much wider market outlook for the group and enable more ROK enterprises to be confident of speeding up development in China.
"We feel we have already become a Chinese company through years of development and absorbing the culture here. We not only promote China in the ROK but also all around the world," No added.
Localization is a major method used by ROK enterprises. The LG Electron Group has set up 12 factories in China, producing air-conditioners, washing machines, refrigerators and other products. Its annual sales turnover exceeded US$4 billion in 2002.
To train more Chinese talents is another strategy of ROK enterprises. Over 98 percent of LG employees here are Chinese and an LG scholarship was launched in 19 Chinese universities.
Besides manufacturing, ROK enterprises have also marched into the financial arena. The LG insurance company has opened a representative office in China for eight years and sought an operation license here. The huge potential in China's insurance market attracts ROK insurers.
China's rapid economic growth and the enhancement of social security and public awareness will promote the development of its insurance industry as well as provide more opportunities for other northeast nations, said Lee Ji-Eun Lee, chief representative of the LG insurance company in Beijing.
Lee said bilateral cooperation and mutual understanding have grown along with economic exchanges. A big common market was formed among northeast Asian nations and more localized ROK enterprises have become one of the backbones of the Sino-ROK economic community, she said.
"Some 70 percent of passengers on board [Korean Air] are from the ROK currently. We believe half of passengers will be Chinese in one or two years," said H.O. Shin. "Chinese enterprises have also tried to enter ROK market, which is a really good trend."
(Xinhua News Agency July 7, 2003)
