Trade B/W SKorea, China Set to Reach Major Milestone in 2005

[HenryTo]

Tuesday February 15, 8:36 AM

Trade Between S.Korea, China Set to Reach Major Milestone in '05

SEOUL, Feb 15 Asia Pulse - Trade between South Korea and China is likely to surpass US$100 billion in 2005, 13 years after diplomatic ties were established, Seoul's top envoy to Beijing said Tuesday.
"Bilateral trade is expected to easily exceed the $100-billion mark this year," Kim Ha-joong, the South Korean Ambassador to Beijing, said in a speech at a breakfast meeting of businessmen.

The trading partners are expected to achieve the landmark level three years ahead of a deadline set by President Roh Moo-hyun and Chinese leaders in 2003, he said.

The meeting was organized by the Federation of Korean Industries, a lobbying group for the nation's family-controlled conglomerates.

Bilateral trade stood at a mere $5 billion in 1992, when the two countries established formal relations, but the amount soared above $90 billion last year.

The ambassador expected the Chinese economy will enjoy high growth for some time thanks to its stable political leadership.

"China is likely to post an annual economic growth rate of more than 7 per cent for the time being under its collective leadership centering around President Hu Jintao," Kim said.

He said South Korean companies should recognize China as an economic powerhouse, steel themselves for challenges ahead and select a few areas in which they have an edge over Chinese rivals.

"It is impossible for South Korea to beat China in all competitive areas," the diplomat said. "Domestic companies should thus focus on business areas in which they have absolute advantage."

Kim said the popularity of South Korean pop culture in China and a rise in Koreans studying there are bolstering domestic firms' competitiveness, giving them a chance for further advancements.

"A more developed China will serve as a good opportunity for South Korea because of its proximity if the two countries maintain friendlier ties," he said.