12TH KOREA-CHINA FINANCE MINISTERS' MEETING

The Ministry of Strategy and Finance and China's National Development and Reform Commission (NDRC) held the 12th Korea-China Finance Ministers' Meeting on December 30, 2013.The Korea-China Finance Ministers' Meetings have been held annually, and the 12th meeting is the first since President Park and President Xi Jinping were elected to office.

At the meeting, the two countries exchanged opinions regarding economic trends, macro- economic policies, major policies concerning job creation and investment, urban policies and energy policies, as well as discussed cooperation for sustainable development and the launch of joint research programs.

Discussions by topic are as follows:

Creative Economy and Investment Stimulation

The two countries agreed to set up a few new bilateral advisory committees, such as an urban policy advisory committee and a ministry-level startup venture support committee.There will be private-sector forums and joint workshops regarding the establishment of venture startups and international green house gas emissions trading.The two countries decided to hold a Korea-China venture capital forum in order to support startup SMEs (small- and medium-sized enterprises) of the two countries.The two countries also agreed to develop a Korea-China economic cooperation zone in the Saemangeum reclamation area.

The Korean government introduced its demand-based technology development support program, which was designed to help SMEs when they develop technologies according to the requests of buyers, and the Chinese government showed support for the program.

Joint Research

The Korea Institute for International Economic Policy (KIEP) and China's NDRC will start working on joint research projects in 2014, and outcomes of the projects will be discussed at the annual Korea-China Finance Ministers' Meetings.Discussions of the meetings will be followed up by the bilateral working group between the Ministry of Strategy and Finance and NDRC, whose first meeting will be held in the first half of 2014.

Boosting the Service Sector

The two countries shared the view that the service sector is important in order to boost domestic demand and grow sustainably.Korea suggested promoting services trade by utilizing the Korea-Chinese FTA, while China introduced its Shanghai Free Trade Zone and service market opening policies for the financial and cultural sector.

Urban Development and Climate Change Policies

Korea talked about urban reforming policies, and China introduced urbanization policies.The two countries decided to set up a Korea-China urban policy committee in order to cooperate in urban planning, urban regeneration and development, and ubiquitous city development.The Korean government asked for Chinese government support when Korean enterprises try to participate in Chinese urban development and ubiquitous city development projects.

With regard to climate change issues, the two countries decided to cooperate in preparing for international green house gas emissions trading, while jointly carrying out energy efficiency assessment for Korea-China joint enterprises, offering training programs for energy saving and adopting an energy efficiency rating system.

The next meeting will be held in China in 2014.

Please refer to the attached PDF.

distributed by