Pathway to Chinese Market
An official from the commercial authorities said that a huge amount of inquiries regarding Korea-China FTA are being received from global enterprises, indicating that Korea is becoming a key pathway to enter the Chinese domestic market after the Korea-China FTA.
The merit of “Entrance into China after Investment in Korea” is notable. First of all, organized regulations and policies formed through the FTA are the greatest merit and advantage for the enterprises. China’s complicated process of customs procedures has always been a big barrier for global companies trying to enter the Chinese market.
An official from the Ministry of Trade, Industry and Energy said, “The clause of custom clearance within 48 hours in the Korea-China FTA will save huge amount of time compared to the past.” Global enterprises have always faced non-tariff walls such as delays of clearance and express charges.
In addition, some industries restricted by Chinese government such as services, entertainment, and distribution are now opened with the FTA. The intellectual property regulation in the FTA protects the global enterprises from imitation threats.
Choi Kyung-hwan, deputy prime minister and minister of strategy and finance, also stated on Jan. 1, “The government will induce global enterprises’ investment and production in Korea equipped with great infrastructure and policies to run a business by taking advantage of the Korea-China FTA.”
South Korea allows foreign companies to have the same rights as Korean companies if the company gets more than 10 percent of its shares from Korean partners.