S. Korean food firms to set up safety lab in China

By Lee Joon-seung
SEOUL, June 24 (Yonhap) -- More than a dozen South Korean food companies will set
up a joint inspection laboratory in China to check the safety of products and
ingredients used by their plants there, health officials said Wednesday.

The move comes as Seoul is set to impose tougher sanitation rules for food
imported under an original equipment manufacturing arrangement between local
companies and their overseas suppliers.
The Korea Food and Drug Administration (KFDA) said 14 companies that operate food
ingredient and production plants in China have reached an understanding to invest
a total of 3.82 billion won (US$2.97 million) to build a testing facility in
Qingdao.
Qingdao in eastern China is home to many South Korean food companies, with the
laboratory to apply strict safety quality standards to products they check.
"Food and beverage companies have agreed on the total and are currently reviewing
investment details," an administration official said.
The 14 firms, including food giant Nongshim Co., have been hurt by concerns over
the substandard quality of food and ingredients produced by Chinese companies and
plants that are operated by South Korean businesses.
Many South Korean companies have used China as a production base to take
advantage of cheaper labor costs and to enter the vast market.
yonngong@yna.co.kr
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