Sergey Kalitin, Minister of Industry and Trade of the Primorsky Territory, opening the meeting, said: “We have fairly stable trade, cultural and diplomatic relations with the Republic of Korea. Investment cooperation is well established—81 projects with the participation of Korean investments are under implementation in the Primorsky Territory, including those implemented under the preferential regimes of ASEZ and FPV. The investments made amounted to 17.3 billion rubles, the planned volume of investments under the agreements is 129.8 billion rubles. Projects are being implemented in the field of tourism and recreation, development, fish processing, timber processing, chemical industry, cooperation is underway in the construction and shipbuilding industries, and agriculture. The Republic of Korea is one of our main business partners, we are closely following the further development of our relations, in which a lot of effort and money have been invested.”
Welcoming the participants, Alexander Masaltsev, Trade Representative of the Russian Federation in the Republic of Korea, said that Korean business is determined to continue cooperation with Russia.
“First of all, we are talking about small and medium-sized businesses that want to maintain the chains and connections that have been built over the years, good relations. Especially with the Primorsky Territory, especially in the field of tourism,” Alexander Masaltsev said, noting that despite the sanctions pressure and strategic alliance with the United States, South Korea is exempt from the direct foreign product rule.
The Trade Representative gave entrepreneurs a number of practical tips that can help in doing business with South Korea.
“Due to the suspension of direct flights between countries, to visit Korea or receive Korean partners, you can use transit through Turkey, the UAE, Uzbekistan and Vietnam. Sea transportation between Vladivostok and Busan is still carried out by Sinokor Rus and the FESCO Transport Group,” shared Alexander Masaltsev.
Speaking about the banking sector, he recommended that businesses interested in making transactions with Korea open accounts in the Moscow office of a Korean bank, which can send and receive payments from the head office.
The businessmen were also told about the current situation in the fish and timber trade. 43% of Korean fish and seafood imports are from Russia, mainly from the Primorsky Territory. The main types of wood exported from Russia were not affected by export restrictions.
During the meeting, the rules and features of the export of compound feed, the requirements of the Korean legislation were explained to the resident of the ASEZ “Mikhailovsky” by Rusagro-Primorye. Under an agreement with the Russian Far East and Arctic Development Corporation (FEDC), the investor implemented a project to create an elevator complex for 120 thousand tons of one-time grain storage and a feed mill with a capacity of 300 thousand tons annually. Also, within the framework of the project, in the commissioning mode, a workshop for technical products, a slaughterhouse and a meat processing plant were launched, six pig farms are being built for a one-time maintenance of 54,000 heads each.
Concluding the meeting, the Trade Representative expressed the hope that the information presented would be useful for the Primorsky business and help expand business ties with the Republic of Korea, enter and gain a foothold in the new market.
According to the FEDC, 11 companies with Korean participation are currently working among the residents of the ASEZ and FPV. The total investment in projects is 10.3 billion rubles, jobs are created for more than 1,200 people. The companies operate in the areas of service provision, logistics and transport, agriculture, production of building materials, as well as in the forestry, chemical and food industries. At present, three enterprises with the participation of Korean investments have been put into operation.
