President Moon Jae-in and first lady Kim Jung-sook toast with South Korean actress Choo Ja-hyun and her husband, Chinese actor Yu Xiaoguang, during a reception at the Sofitel Wanda hotel in Beijing, Wednesday, the first day of Moon's four-day state visit to China. / Korea Times photo by Koh Young-kwon



By Kim Rahn



BEIJIING ― South Korea and China will soon begin a new round of negotiations for a free trade agreement (FTA) regarding the services and investment sectors, President Moon Jae-in said Wednesday.



The move will help the two nations set a stronger ground for stable economic cooperation, beyond just restoring cooperation that was marred by the row over Seoul's deployment of a U.S. anti-missile system.



In the South Korea-China Business Forum at the Diaoyutai State Guesthouse on the first day of his state visit to China, Moon said the two-year-old FTA is the basis of the two nations' economic cooperation and its needs to be expanded to more sectors.



"In the bilateral talks with Chinese President Xi Jinping tomorrow, we'll sign a memorandum of understanding (MOU) to start the new round of negotiations," Moon said. "I expect new deals to help companies of the two countries advance into each other's markets and to vitalize investment to a larger extent."



Seoul and Beijing signed an FTA in December 2015 mainly on tariff barrier elimination for goods, and agreed to negotiate terms for the services and investment sectors within two years.



President Moon also called for a qualitative improvement in trading by expanding areas from the current manufacturing-focused trade to the consumer goods and service sectors, and allowing online shopping platforms to operate in each other's country.



Moon said South Korea and China can also gain synergy through cooperation in new industries such as the internet of things and artificial intelligence, and urged joint efforts to develop new and renewable energy, and fight fine dust.



According to Moon, the two nations have the common idea of developing a continent-wide economic network ― Xi's "One Belt, One Road" initiative and the President's "New Northern Policy" and "New Southern Policy."



"I suggest joint overseas business expansion by combining the advantages of companies in South Korea and China," Moon said, adding there have already been successful cases, such as a joint venture to construct the Palm Gateway apartment complex in Dubai.



Moon also met Chinese Vice Premier Zhang Gaoli, who came to the forum.

Some 600 business leaders ― from 246 Korean companies and economy-related organizations and from 200 Chinese companies ― participated in the forum.



Before the forum, Moon had a business roundtable with about 30 CEOs and chairpersons. The attendees from China included China Council for the Promotion of international Trade Chairman Jiang Zengwei, BAIC Group Chairman Xu Heyi, Baidu Chairman Robin Li, BYD Chairman Wang Chuanfu, Contemporary Amperex Technology Limited (CATL) Chairman Robin Zeng, China State Construction Engineering Corp. Vice President Zheng Xuexuan, Sinopec Group Vice President Liu Zhongyun, Huawei's China region President Peng Zhongyang, and Xiaomi Vice President Huang Jiangji.



Korean participants included Korea Chamber of Commerce and Industry Chairman Park Yong-maan, Samsung Electronics Vice Chairman Yoon Boo-keun, Hyundai Motor Vice Chairman Chung Eui-sun, LG Group Vice Chairman Koo Bon-joon, CJ Group Chairman Sohn Kyung-sik and AmorePacific Chairman Suh Kyung-bae.



Alongside the forum, companies and state organizations of the two countries signed 19 MOUs for business partnerships.