Russian Far East woos Korean investors

By Kang Hyun-kyung

Yuri Trutnev

Russian President Vladimir Putin is serious about the development of the impoverished Russian Far East and this will create business opportunities for Korean investors, according to his deputies.

The first Russian-Korean Economic Forum was held against that backdrop, Yuri Trutnev, deputy prime minister of Russia and presidential envoy to the Far Eastern District, said during a news conference at the Lotte Hotel in Seoul, Tuesday.

“President Putin has directed us to find ways to facilitate the development of the Russian Far East as soon as possible, and he is paying a great deal of attention to the region. He directed officials to create a business-friendly environment to attract international investors to build infrastructure in the area.”

As part of the effort to attract Korean investors, the Russian official said that the two sides will hold the forum on a regular basis.

Since he arrived in Seoul, Monday, Trutnev said he has met with the leaders of several businesses, including Lotte, Daewoo and Samsung, to encourage them to consider business investment in the Russian Far East. “Through the meeting, I realized that they were deeply interested in the region,” the Russian official said.

The 100-member Russian delegation is visiting Seoul for the first ever economic forum with South Korea. During the forum, the Russian delegation presented the economic outlook of Russia, the business environment and tax situation, as well as other benefits that foreign investors will get if they invest in the region.

Russian officials said that the development of the Russian Far East will create a win-win situation for the country and Korean investors. The region is endowed with rich natural resources and energy which Korea desperately needs for economic growth, they said.

The Russian Far East accounts for 36 percent of the Russian territory. It is home to nearly 70,000 ethnic Koreans, who are the descendants of early Korean migrants to the region.

During a keynote speech, Han Duck-soo, president of the Korea International Trade Association, said there is no doubt that the Russian Far East will create business opportunities for Korean companies.

He proposed that the Russian government ease regulations in customs services and provide further tax benefits for businesses.

Choi Moon-soon, governor of the Gangwon Province, said that his province is eager to increase cooperation with the Russian Far East and called on Russian officials to consider increasing flight services to facilitate people-to-people exchanges.

Choi said that the two sides can also team up on a northern sea route connecting Rotterdam to Korea via Vladivostok.

“I understand that the new trade route will be feasible by 2020 and if this is available, businesses can cut down logistics costs as the route is 4,000 kilometers shorter than the existing sea lane,” he said.

Through the partnership, Choi said, Gangwon Province and the Russian Far East can rise to the center of economic activities in the Asia Pacific region from the periphery.