The Minister of Industry announced that the government intends to enhance assistance for Korean consumer goods producers and content companies that are conducting business in China, in response to the increasing worldwide appeal of Korean culture.
Industry Minister Kim Jung-kwan expressed his views during a meeting in Shanghai with delegates from 14 South Korean businesses, such as leading entertainment company SM Entertainment, prominent cinema chain CJ CGV, video game developer Wemade, popular noodle producer Nongshim, and well-known beauty brand Amorepacific, as reported by the Ministry of Trade, Industry, and Resources.
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Kim accompanied President Lee Jae Myung during his visit to Shanghai, which followed a successful three-day state visit to Beijing, where he engaged in a summit meeting with Chinese President Xi Jinping the day before.
Kim's discussion with the Korean business delegates aimed at exploring methods to enhance Korea's exports of consumer products and content to the world's second largest economy.
These particular items have become Seoul's primary export commodities due to the growing international interest in Korean culture. It was suggested that consumer goods and cultural content could serve as a new catalyst for boosting trade between Seoul and Beijing, as trade between the two cities dropped from $301.5 billion in 2021 to $272.9 billion in 2024.
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During the meeting held this week, the minister confirmed the government's commitment to tackling the numerous challenges Korean companies are encountering in China, specifically the heightened competition from domestic companies, as reported by the ministry. He further committed to implementing new initiatives aimed at facilitating the growth of Korean businesses in China, as reported by the ministry.
Moreover, Korean and Chinese consumer goods, content, and gaming companies recently came together to establish a memorandum of understanding (MOU) aimed at collaborating to introduce Korean products into the Chinese market.
This significant agreement was formalized during the Korea-China business forum in Beijing, coinciding with President Lee Jae-myung's official visit to China on the 5th of this month.
Four Memorandums of Understanding were signed among consumer goods companies within the sector. Additionally, three MOUs were entered into among content corporations, encompassing aspects such as K-pop, drama, and gaming, with the signing of two additional MOUs pertaining to emerging industries. Shinsegae entered into a Memorandum of Understanding with Alibaba International, a prominent Chinese retail conglomerate.
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This collaboration entails the exportation of domestically sourced products by Shinsegae through Alibaba platforms in China. The two entities previously established a joint venture in September of the prior year and are engaged in cooperative business efforts, including the transformation of Gmarket, an e-commerce subsidiary of Shinsegae, into a subsidiary of the joint venture.