Shanghai Expo golden opportunity for S. Korea in China: diplomat

By Lee Joon-seung
SEOUL, March 23 (Yonhap) -- Next year's Shanghai expo presents a golden
opportunity for South Korea to boost its national brand image in the minds of the
millions of Chinese visitors expected to tour the six-month long event, Seoul top
diplomat in the city said Monday.

China is South Korea's largest export market, and with Beijing implementing
various economic stimulus measures, there is vast opportunities to further
expand bilateral business ties, Consul General Kim Jeong-kil told reporters.
Beijing has announced a string of support measures for its real estate, export
businesses and pledged to allocate 4 trillion yuan (US$586 billion) in 2010 to
help facility investment and the construction sector.
"Trade volume between the two countries is twice the size of Seoul's bilateral
commercial relations with the United States," the official said, emphasizing the
importance of the Chinese market for the country.
He added that with the greater Shanghai region accounting for half of the total
trade, Seoul's participation in the world exposition -- expected to attract over
70 million people -- could bolster local interest in South Korea, bringing
benefits for economic cooperation down the road.
Of the visitors, Chinese organizers expect 95 percent to come from China who will
be able to visit the various national pavilions highlighting culture, technology
and other advances made by participating countries.
The so-called Korea wave, fueled mainly by popular TV dramas and movies, has
helped raise awareness of South Korea in the minds of many Chinese.
South Korea exported US$91.38 billion worth of goods to China while importing
$76.93 billion in 2008. The Chinese economy grew 9 percent last year with global
analysts predicting growth to range from 5.5 percent to 7.6 percent this year.
This is much higher than the negative 2 percent growth being forecast for South
Korea by its policymakers.
Kim also said that with South Korea's hosting of the Yeosu Expo in 2012, Chinese
cooperation could help the local event.
Yeosu and Shanghai signed a memorandum of understanding last August to work
closely with each other to successfully host the expositions, share knowhow and
promote visits of tourists.
The South Korean city located 455 kilometers south of Seoul was granted the right
by the Paris-based Bureau of International Expositions in November 2007.
On the issue of South Korea falling behind other key countries in the building of
its national pavilion, Kim and other official at the consulate and state-run
Korea Trade-Investment Promotion Agency (KOTRA) said slight delays are the result
of the sharp depreciation of the Korean won versus the Chinese yuan, while due
procedures needed to be followed in the picking of the designers and contractors.
"A few countries like Spain and France are ahead, but there is no danger of the
country not meeting the deadline," consul general said.
Related to the importance of the Chinese market, policymakers in the Ministry of
Knowledge Economy said that expanding domestic market presence in the country is
key to arresting the sharp drop in South Korean exports.
Outbound shipments to its neighbor that grew 25 percent on-year in the first nine
months of last year, plummeted 32.9 percent in November and 32.3 percent in the
last month of 2008.
The ministry in charge of industrial policy and trade promotion said South Korean
exporters must try to grab a larger portion of China's domestic market instead of
relying on Korean subsidiaries operating in the country and multinational firms
to import parts and materials for assembly so they can be sold abroad later.
Roughly half of all exports go to South Korean companies operating in China, with
another quarter going to multinationals. Only the remaining 25 percent are
products that are sold directly to Chinese consumers.
yonngong@yna.co.kr
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