Gwangyang Economic Zone Authority Signs Business Agreement with China Weihai Comprehensive Bonded Zone

Establishing Investment Partnership for Global Market Expansion

The Gwangyang Bay Area Free Economic Zone Authority (Commissioner Song Sang-rak, hereinafter referred to as Gwangyang Economic Authority) announced on the 9th that it held a business agreement ceremony in the situation room on the 2nd floor of the Gwangyang Economic Authority to establish a cooperative system for mutual national entry of companies and global market information exchange between China Weihai Comprehensive Bonded Zone and companies from both countries.

This agreement was prepared with the purpose of supporting global expansion cooperation based on client companies and establishing an institutional cooperation system, triggered by the project last July by the Korea Auto Parts Association to build a business model for EV lightweight materials and parts development and manufacturing companies.

[Photo by Gwangyang Economic Promotion Agency]

The event was attended by 12 people including Wei Mingtao, Party Secretary of Weihai Comprehensive Bonded Zone, and Lee Kyung-jin, Director of the Korea Auto Parts Association, during which the business agreement was signed.

The main contents of the agreement include ▲supporting research on related markets at the investment review stage for mutual national entry of companies from each country ▲recommendation, discovery, and collaboration matching support of local partner companies when companies from each country enter and invest mutually ▲comprehensive administrative support such as corporation establishment, production, and logistics base construction when companies from each country invest mutually ▲cooperation and support when companies expand production and logistics bases into additional global markets.

According to the Customs Act, the term ‘bonded’ means temporarily suspending the imposition of customs duties, and a bonded zone is a place where foreign goods with suspended customs duties are stored. The China Weihai Comprehensive Bonded Zone, which signed the agreement, was established in May 2016 to attract foreign investment and promote China’s import and export activities, playing an important role in strengthening the Chinese government’s global trade competitiveness and fostering new growth engines.

Wei Mingtao, Party Secretary of Weihai Comprehensive Bonded Zone, promised to actively cooperate in investment attraction activities by holding regional and industry-specific IRs for Chinese clients and providing opportunities to invite companies interested in investment to tour the Gwangyang Bay Area industrial complex.

Song Sang-rak, Commissioner of Gwangyang Economic Authority, said, “Through this agreement, we expect to establish a foundation to further expand economic exchange and cooperation between the two countries and become a central hub for mutual national economic development.” He added, “We also plan to strive to successfully promote corporate investment attraction by utilizing mutual networks.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr