In 2005, approximately 3.5 million South Koreans visited China, making South Korea China's biggest source of foreign tourists, according to Chinese statistics. The number reached 4.4 million in 2006, an average of more than 10,000 a day. At the end of 2006, the number of South Korean students in China exceeded 54,000, whereas the number of Chinese students in South Korea totaled 24,000, both representing the largest number of foreign students in each other's countries.

Sharing the future

Kim Ha Joong, South Korea's Ambassador to China, attributed the flourishing bilateral relations to the two countries' complementary economic interests, lack of major political conflicts, shared concerns over peace and stability on the Korean Peninsula, geographic proximity, historical bonds and common cultural traditions. All these have enabled China and South Korea to achieve "amazing development" in their relations over the past 15 years, he said.

Given these factors, hopes are high that the two countries' cooperation will grow even more prosperous in the future. When Chinese President Hu Jintao visited South Korea in 2005, both countries vowed to boost bilateral trade so that their two-way trade volume could surpass the benchmark of $200 billion by 2012. In light of the current trends, China and South Korea will achieve this goal in 2010, Kim said.

Kim also said that although the two countries' relations have grown from infancy to maturity, there is a need to shape a new economic order. In particular, they should sign a free trade agreement to push bilateral economic and trade relations to new levels.

In March, South Korea and China began a government-industry-academia joint study on a free trade agreement. The results of the study will be taken as the basis to decide whether formal consultations should be carried out between the governments, Kim said.

The most sensitive sectors for South Korea are agriculture, forestry and aquaculture, while China is less competitive in industries such as iron and steel, petrochemicals, automobiles and auto parts, Kim said. But he believes all the problems can be tackled during the negotiations.

A free trade agreement between China and South Korea would bring about a win-win situation for the two countries and an all-win situation in the region at large, Li said. South Korea will take the driver's seat in economic and trade cooperation in East Asia by working to establish a free trade area with China now that Seoul signed a free trade agreement with the United States in June, he added. South Korea's parliament and the U.S. Congress must ratify the free trade agreement before it takes effect.

The benefits of a free trade agreement between China and South Korea would not be limited only to the economic sphere. Such an agreement would help enhance South Korea's competitiveness and international standing, Li said. As China and North Korea have railway links, a China-South Korea free trade area would prompt North Korea to play a more active role in regional economic cooperation, thereby contributing to the development of the economic community between South Korea and North Korea, he said.