Newsletter for the South Korea businesses and investors (Issue 4, 2014)
Russian Chamber of Commerce and Industry hosts expert meeting on Russian exports to South Korea
On 11 June 2014, the subcommittee on exports within the Import and Export Promotion Committee met to discuss: "Russian exports entry into South Korean market: Prospects and solutions."
The following issues were examined:
- South Korean import structure, including current consumption indicators, the 2014-2015 forecast, and the categories of goods in demand and the extent of that demand
- customs clearance, classification, and regulation of imported goods to Korea,
- the digest of the Korean UNIPASS export/import customs system
- marketability of Russian products in the Korean market
- solutions and strategies for Korean market entry
- the process to establish business contacts
- a case study about each industry and category of goods
- thresholds and solutions for importing into Korea
Russian medium and small businesses might encounter challenges, such as:
- language differences
- poor awareness of Korean business custom and traditions
- unfamiliarity with the Korean legal system
Experts generally agree that business/consultancy agencies must be found to serve as intermediaries for researching Korean partners, concluding contracts with them, and advancing business negotiations, especially for medium businesses.
Komi Republic calls for cooperation with South Korean business community in investment projects
A presentation on the Komi Republic’s resource potential was made to South Korean investors in Moscow recently. Korean companies were informed about the rich environmental and ecological assets of the region. This was latest of a series of regular events to promote the Komi Republic's potential for Korean parties interested in joint projects, investments, cooperation, and exchange of experience.
The program presented the legal foundations and preferences constructed by the Komi Republic Government to promote investments, as well as examples of successfully executed projects funded by foreign capital.
Participants in the conference included enterprises from the Komi Republic, as well as representatives of Samsung Electronics, LS Networks Co, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co, Hanwha Corporation, and Doosan Infracore.
South Korean businesses showed particular interest in:
- the Yarega mining and chemical complex construction project (with capacity of 650,000 tons of titanic ore mining and processing)
- the Intinsky District residential quartz construction
- Troitsko-Pechorsky District remote disposable added-value wood-processing project
Participants also discussed ways to exchange information and organize the supply and production logistics chains to Korea.
Republic of Korea takes part in establishment of the Priority Development Zone in Russian Far East and a technological cluster in Russky Island, Vladivostok
Lee Yang Goo, the Consul General of South Korea to Vladivostok, at an international conference "Far East – Initiatives without Boundaries," announced agreements with Russia regarding cooperation in the implementation of a shipbuilding project in Bolshoi Kamen; the establishment of technological cluster in Russky Island; and the designation of priority-development zone.
Cooperation and collaboration will focus on areas such as logistics, agriculture, energy and shipbuilding, science, and technology, as well as healthcare.
Projects in Rostov Oblast attracts the Republic of Korea
During a recent meeting about South Khaba development issues, Anatoly Trut, Head of the Design Work Department of the Housing and Utilities Ministry of Rostov Oblast, presented a Starocherkasskaya water supply project to potential investors from South Korea, who were visitors to the Rostov area.
According to Leonty Slyadnev, First Deputy Administration Head, the region’s current mission is to impress investors with an optimistic first view of the water-supply project, as well as to answer all the questions from prospective investors.
Representatives of Korean businesses expressed substantial interest in collaboration with the region with respect to the construction of, and support for, inter-municipal ecological waste-recycling complexes.
Korean state-owned corporation KEPCO considers prospective participation in Vostochny Port infrastructure development projects for coal supply
In 2012, KEPCO’s subsidiary, Western Power, in cooperation with the Russian enterprise Rosengineering, first proposed the Vostochny port-facilities-development project. Recently, the South Korean government's approval of new policies on public enterprises’ deficit reduction (foreign investment reduction), caused KEPCO to launch the project individually, without involving its affiliated company. The project also involves POSCO, another major Korean company.
Investments total $1.3 billion. The co-financing rates between the Russian and Korean parties are apportioned at approximately 52% and 48% accordingly (20% - KEPCO, 10~15% - POSCO, less than 3% - Western Power).
Currently, a Korean company, Doha Engineering, is carrying out an expert examination of the economic feasibility of the project. The decision on implementing investments will be made only after receipt of the economic viability test results.