Russian Government to “Fully Support Korean Companies When Entering into Far East Russia”
- KITA, Presidential Committee on Northern Economic Cooperation, KOTRA held‘Day of the Korean Investor’by inviting Russia’s high ranking officials, including Deputy Prime Minister -
- Russian government promised to listen to Korean companies’ difficulties when entering into the Far East Russia and provide supports -
- Expect to see more specified ‘9-BRIDGE’ areas of the New Northern Policy… medical care and bio, shipbuilding and harbor development, agriculture, forestry, processing marine product and general manufacturing are likely to expand -
In order to dramatically increase the investment of Korean companies in the Far East region, the Russian government pledged not to spare any kind of support such as tax benefits, construction of basic infrastructure, easing of the certification system, etc. It attracted keen attention from the Korean companies who are planning to make inroads into the region upon the New Northern Policy.
The Korea International Trade Association (Chairman, Kim Young-joo) held the ‘Day of the Korean Investor’ for the first time in Korea at the Shilla Hotel in Jung-gu, Seoul, on February 12th in cooperation with the Presidential Committee on Northern Economic Cooperation (Chairman, Kwon Goo-hoon) and KOTRA (President & CEO, Kwon Pyung-oh) and the Russia Far East Investment and Export Agency. The 3rd Day of the Korean Investor this year took place in accordance with a business agreement concluded by KOTRA and the Russia Far East Investment and Agency at the Eastern Economic Forum in September 2017 to expand business cooperation between the two countries. The Deputy Prime Minister of the Far East of Russia attends the event every year, and this is the first time in Korea to hold the event (the first and the second were held in Russia.)
The two governments are ambitiously pursuing economic cooperation with the goal of achieving 30 billion dollars in trade ($ 24.8 billion in 2018) by 2020, which is the 30th anniversary of diplomatic relations between the two countries and the aimed deadline to complete free trade negotiations on service and investment. Russia is making every effort to woo Korean companies in particular for the development of the Far East. Among the areas of nine bridges (9-BRIDGE) proposed by President Moon Jae-in in September 2017 at the Eastern Economic Forum, the Deputy Prime Minister directly handles the difficulties related to the projects in which Korean companies are participating, including manufacturing industries such as shipbuilding, harbor, agriculture, fisheries and medical care and he is doing his best to boost the economic cooperation between the two countries.
Yuri Trutnev, Deputy Prime Minister of Russia and Presidential Envoy to the Far Eastern Federal District, said, “We have been positively working on the issues of foreign medical staffs and foreign medical equipment certification by designating the international medical zone in Vladivostok. We welcome the competitive Korean medical institutions to enter into the Russian Far East.” Deputy Prime Minister Trutnev actively participated in the event by hosting one-on-one interviews with Korean companies in person from the morning throughout the afternoon and listened to the companies’ difficulties.
This event consisted of individual interviews and business dialogues. Some 30 major Korean large companies, small and medium-sized businesses and organizations, including Hyundai E & C, Lotte International, Pusan National University Hospital and Donghwa Enterprise took part in the event and sought various ways to make inroads into the region. A large number of Russian companies with strong willingness to cooperate with Korea such as BERKUT (Port development and operation), FESCO (logistics and transportation) and ROSETI (power generation and distribution) attended the event.
Chung Jin-haeng, Vice Chairman of Hyundai Engineering & Construction, said, "We are actively promoting energy, chemicals, and civil engineering projects in the northern economic region starting from Far East Russia." Lee Ho-seok, deputy director of Pusan National University Hospital (President, Lee Chang-hoon) stressed, "If the medical special zone, which is the biggest obstacle to enter into Far East Russia, is designated as soon as possible, we will thoroughly examine the feasibility of expansion into the region by seeking collaboration measures with the ICT-based medical system of Pusan National University Hospital and Himchan Hospital.”
Another participant Lee Choong-ik, CEO of Lotte International, said, “We intend to become a comprehensive farming company by investing in various agricultural fields with soybean and corn produced through the farming corporation that we acquired last year in the Maritime Province of Siberia.” He also stated, “Based on the vast territory of the Far East, we will accelerate our efforts to secure and develop future food resources.”
Chairman, Kim Young-joo of the Korea International Trade Association, emphasized the economic importance of the Far East by saying, “The Far East is a place where the common interests of Korea and Russia meet as Russia can secure new growth engines and it is the starting point for Korea to expand the economic exchange territory through North Korea and Russia to Europe.” He also added, “We will communicate with Russian regarding the suggestions and difficulties that the participating companies in the Day of the Korean Investor and we will continue to monitor them and actively support Korean companies' entry into Russia through various platforms such as the Eastern Economic Forum and the Korea-Russia Busines