Tai­wan, Korean firms can col­lab­o­rate, says Eco­nom­ics Min­istry

The China Post - - BUSINESS - BY JOHN LIU

Since Tai­wan and South Korea fre­quently trade with each other within the same in­dus­try, there are op­por­tu­ni­ties for cross-coun­try col­lab­o­ra­tion in the global sup­ply chain, Deputy Eco­nom­ics Min­is­ter Cho Shih-chao ( ) said on Fri­day.

Cho made the com­ment at a con­fer­ence on world eco­nomic trends and in­dus­trial co­op­er­a­tion be­tween Tai­wan and South Korea.

The two coun­tries’ close trade ties can be shown through a few high-pro­file merg­ers and ac­qui­si­tions car­ried out in re­cent years. Among them is Yuanta Se­cu­ri­ties’ ( ) US$250 mil­lion bid to ac­quire a 50.3-per­cent stake in TongYang Se­cu­ri­ties, the sixth largest se­cu­ri­ties firm in the South Korean mar­ket.

Another is Hon Hai Pre­ci­sion In­dus­try’s ( ) US$360 mil­lion bid to ac­quire a 5-per­cent stake in C&C, a sub­sidiary of SK Group, one of the largest con­glom­er­ates in South Korea.

And there is ma­chine tool man­u­fac­turer Fair Friend Group’s ( ) US$20 mil­lion pur­chase of DMC’s 80-per­cent stake.

There are also Korean

firms con­tin­u­ally mak­ing in­vest­ment in Tai­wan, the deputy eco­nom­ics min­is­ter said, adding that he looks for­ward to new busi­ness op­por­tu­ni­ties brought about by the bi­lat­eral in­vest­ment.

Given the high level of “trade ac­tiv­i­ties within the same in­dus­try” and the global sup­ply chain’s co­op­er­a­tive na­ture, Chao be­lieves there are op­por­tu­ni­ties for com­pa­nies of the two coun­tries to work to­gether.

Chao re­ferred to the credit card in­dus­try, where Visa and MasterCard were co­op­er­at­ing in­stead of com­pet­ing with each other in the early stage to ex­pand in mar­ket size.

Tai­wan and South Korean play­ers in the in­for­ma­tion and com­mu­ni­ca­tion tech­nol­ogy in­dus­try may like­wise team up for mu­tual ben­e­fits, Chao said.

Tai­wan and South Korea’s

Trade Re­la­tions

Both Tai­wan and South Korea are ex­port-ori­ented economies. With many over­lap­ping in­dus­tries, the two coun­tries are com­pet­ing head-to-head in the global trade war.

Still, trade vol­umes be­tween the two coun­tries to­taled US$27.47 bil­lion in 2014, and South Korea is now Tai­wan’s sixth largest trade part­ner, ac­cord­ing to cus­toms data.

Tai­wan’s ex­ports to South Korea to­taled US$12.69 bil­lion in 2014, while im­ports from South Korea to­taled US$14.79 bil­lion. South Korea is Tai­wan’s sixth largest ex­port mar­ket, and fourth largest im­port trade part­ner.

The sta­tis­tics data in­di­cates in­dus­tries in the two coun­tries are in fact com­pli­men­tary to each other.

Korean Rep­re­sen­ta­tive

to Tai­wan Agrees

Cho’s re­marks echoed Korean top en­voy to Tai­wan Cho Baek­sang’s state­ment made one day ear­lier at a Korean na­tional hol­i­day ban­quet.

Although the two coun­tries share sim­i­lar in­dus­tries and are there­fore con­sid­ered trade com­peti­tors, com­pli­men­tary busi­ness part­ner­ship is also present given the two coun­tries’ same fo­cus on semi­con­duc­tor and chem­i­cal prod­uct trans­ac­tions and in­vest­ment, the Korean rep­re­sen­ta­tive said.

In the fu­ture, the two coun­tries must view each other not only as com­peti­tors, but also part­ners in eco­nomic col­lab­o­ra­tion and cul­tural ex­change, he said.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.