15th Korea-China Meeting on Economic Cooperation
Korea and China Agree on Strengthening
Economic Cooperation
Deputy Prime Minister Kim Dong Yeon attended the 15th Korea-China Meeting on Economic Cooperation on February 2 in Beijing. The Ministry of Strategy and Finance and China’s National Development and Reform Commission reached an agreement to cooperate in the following areas:
1. Joint pursuit of Korea’s new Northern and Southern Economic Cooperation Initiative and China’s Belt and Road Initiative
- Revise and improve the previous MOU on Korea’s Eurasia Initiative and China’s Belt and Road Initiative
- Hold a policy dialogue consisting of officials from governments, research institutions and businesses to jointly explore new business opportunities and expand financial support
- Continue to look for joint investment projects in third countries
2. Maintaining cooperation amid global uncertainties
- Undertake joint research[1] on income-led growth and growth through innovation
- Strengthen bilateral cooperation at the G20 and other multilateral venues, and support international effort to combat climate change
3. Improving conditions for business operation in each country[2]
- Promote tourism and cultural exchanges in both countries[3] and create a cooperation channel between the two governments to facilitate tourism industries
- Encourage Korea-China B2B (business-to-business) exchange and collaboration by holding a business forum
- Renew MOU between Samsung Electronics and NDRC
4. Strengthening cooperation in regional, agricultural and rural development
- Work on measures to cooperate in China’s three northeastern provinces: Create a working-level cooperation channel[4] for close coordination between Korea’s Northern Economic Cooperation Initiative and China’s Belt and Road Initiative
- Increase cooperation in the Korea-China industrial cooperation complexes[5]
- Continue to collaborate on ways to improve the quality of life in the agricultural and rural sectors, and foster eco-agriculture
Korea will host the 16th Korea-China Meeting on Economic Cooperation in 2019.
Meeting with People’s Bank of China Governor Zhou Xiaochuan
Deputy Prime Minister Kim Dong Yeon attended a luncheon meeting at the People’s Bank of China on February 2 at the invitation of Governor Zhou Xiaochuan.
DPM Kim and Governor Zhou agreed that both Korea and China have been growing steadily backed by the global economy’s synchronized recovery, although there remain risks, such as the spread of protectionism and monetary policy normalization in major economies.
DPM Kim and Governor Zhou also discussed the policies surrounding cryptocurrency in both countries.
Visiting Zhongguancun Science Park[6] in Beijing
Deputy Prime Minister Kim Dong Yeon took a tour of China’s technology hub Zhongguancun Science Park on February 2, guided by its director of management committee Zhai Lixin, and discussed its strategy for success, China’s startup policy and Korea’s growth through innovation initiative.
DPM Kim attributed Zhongguancun’s success to strong support and deregulation by the Chinese government, provision of integrated space between universities and startup related facilities, and a virtuous cycle in the startup ecosystem in which established venture firms pool investment funds together and provide role models for new startups.
DPM Kim introduced some of the measures taken by the Korean government to promote innovation, including a regulatory sandbox, an innovation venture fund worth 10 trillion won aimed at building an ecosystem for new industries and strengthening social safety nets, as well as encouraging inter-business cooperation and removing barriers between agencies. DPM Kim added that the Korean government will develop the Pangyo Techno Valley into a focal point that advances the country’s growth through innovation.
DPM Kim also stated that Korea and China need to increase cooperation on blockchain technology, which has become essential for the 4th industrial revolution.
Speaking on Korea’s Economic Policy at NDRC
Deputy Prime Minister Kim Dong Yeon visited the National Development and Reform Commission on February 1, and gave a presentation on Korea’s economic policy to some hundred NDRC officials and affiliated researchers in attendance. On the theme of ‘breaking down the antiquated and building up the new,’ DPM Kim emphasized the importance of innovation.
DPM Kim spoke about the government’s pursuit of income-led growth, growth through innovation and fairness in the economy, while suggesting that improving the quality of life and boosting the country’s growth potential remain as major tasks.
The following are the key points from DPM Kim’s presentation.
- Income-led growth: Increasing disposable income leads to growth in consumption and business investment, and generates better human capital and higher labor productivity.
- Growth through innovation: Innovation is necessary not only in science and technology, human capital and industry, but also in the social system. The Korean government has worked to create decent jobs and boost the economy’s growth potential by pursuing innovation in regulatory reforms, creating an ecosystem that fosters innovation, setting up innovation clusters and providing funds and financial safety nets to innovative startups.
- Promoting fairness: A fair compensation and market system boosts consumption and investment, and fairness is social capital that can ultimately help promote social integration.
DPM Kim concluded the presentation by underscoring the importance of Korea-China economic cooperation and the need to create a mutually beneficial relationship between the two countries.
Meeting with Korean Enterprise Leaders in Beijing
On February 1, Deputy Prime Minister Kim Dong Yeon met with officials from the Korean companies operating in China, and held talks on the local business environment, the Korea-China B2B collaboration and the difficulties in doing business in China as well as ways to improve them.
DPM Kim discussed the three ways to further improve the Korea-China economic cooperation in order to help improve the Korean companies’ operation in China.
- Create diverse business opportunities for both countries by expanding cooperation in the future industry, such as robotics and big data, while maintaining strong cooperation in the traditional sectors, such as automobile and steel
- Look for new business opportunities by jointly pursuing Korea’s new Northern and Southern Economic Cooperation Initiative and China’s Belt and Road Initiative
- Improve regulations and create freer markets through the upcoming Korea-China FTA service and investment agreement negotiation
DPM Kim pledged to seek strong support from the Chinese government in order to help Korean companies operating in China.
