Newsletter for the South Korea businesses and investors (Issue 6, 2014)
Russian government approves plan to select investment projects in the Far East and Baikal regions
Russian Prime Minister, Dmitry Medvedev, has approved this plan based on the following criteria:
- ratio of private investment to the state participation;
- ratio of tax revenues and contributions to state budget funds received as a result of investment projects for 2014 - 2015;
- value added the second year after the project design completion.
The Ministry of the East shall propose a draft list of viable investment projects to the subcommittee for implementation in the Far East and the Baikal region.
This action is viewed as a positive step towards cementing Russian-Korean relations.
Leningrad region and South Korea are interested in strengthening business ties
The South Korean delegation, led by the deputy mayor of the district, Sokcho, Seoul Yong Bocom, met with the head office of the Leningrad region. The South Korean delegation included leaders of the manufacturing, agriculture/food products and high-tech industries. The delegation was given details on matters of particular interest to them regarding the investment potential of the region, to include comprehensive support from the Economic Development Agency, and tax benefits. The parties agreed to a follow-up meeting to be held in Seoul in November.
Maxim Kiselnikov, First Deputy Chairman of the Committee on Economic Development and Investment Activity of Leningrad Region, discussed the very favorable business conditions, and graciously accepted the Agency for Economic Development of Korean Businessmen, who are interested in doing business in Russia.
The first half of the 2014 foreign-trade turnover between the Leningrad region and South Korea was US$ 50 million.
Primorye concludes agreements with the free trade zones of South Korea
On 10 October 2014, representatives of the Center for Export Development of Primorye signed a cooperation agreement in the field of Russian exports with the free trade zones of Yulchon and Kimje, in the Republic of Korea, thereby increasing business opportunities and product promotions for small and medium businesses of Primorye, in areas such as maritime ventures, and the manufacture of accessories for Korean cars.
The parties agreed to exchange contacts between Korean enterprises and Primorye’s companies in Vladivostok from 27 until 30 October.
South Korea to invest in a medical cluster in the Kaliningrad region
Following the meeting in September of major Korean medical investors and the Deputy Chairman of the regional government and profile ministers in Kaliningrad, a South Korean delegation headed by Lee Joon Wang announced development of a diagnostic and recreational center in Kaliningrad They also discussed possibly expanding the project to the medical cluster. The stated intent now is to create a modern medical center where, in addition to diagnosis and rehabilitation, a protein therapy for cancer patients will be put into place. The project will include infrastructure projects, including hotels where visitors will be able to stay and relax. The projected completion time for the project is three years, once a location is selected.
Deputy Chairman of the Kaliningrad region, Aleksey Silanov, reported that Korean investors have received exhaustive information about the investment opportunities in the Kaliningrad region, including the preferences of the Special Economic Zone, as well as the administrative support of the project in the "single window."
The project was initiated by the Koreans during preparation for the visit of Russian President Vladimir Putin in November 2013. Project management to create a regional medical complex will be under the auspices of the Seoul National University Bundang Hospital, in conjunction with the Myungji Hospital. The complex will be owned and operated by the Russian-Korean management company, which intends to register as a resident of a special economic zone, the details of which are the subject of a separate agreement.