By the end of 2011, the ROK had invested a total of $50 billion in China, mostly concentrating on labor-intensive industries and processing trade. As the environment inside and outside China has changed, the ROK's investment structure has changed as well. Our investment focus has shifted to hi-tech and environmentally friendly programs. For example, the liquid crystal display factory of LG Electronics that launched in Guangzhou, capital of south China's Guangdong Province, constitutes a $4-billion investment. The Samsung Group also plans to invest $7 billion in Xi'an, northwest China's Shaanxi Province. Many ROK enterprises drew up new business blueprints in accordance with China's 12th Five-Year Plan (2011-15), in which China stresses the stimulation of domestic demand to spark active economic growth.

ROK enterprises in China can share their experience in modern business practices, like technology transfer and technology development, with Chinese businesses. In the service sector and circulation industries including logistics, wholesale and retail, they provide Chinese customers with premium services. ROK enterprises in China hire many Chinese employees, contributing to China's social development. They also make great efforts to uphold social responsibility. Their activities have contributed to the development of the Sino-ROK friendship.

Problems stemming from agricultural products have been the biggest obstacle to free trade agreement negotiations between China and the ROK. What could hinder the China-Japan-ROK free trade negotiations? How will a China-Japan-ROK free trade area affect the rest of the region?

Agricultural products have been a sensitive subject during Sino-ROK free trade agreement negotiations. In the coming negotiations between the three countries, China may encounter problems with the manufacturing industry, while Japan will feel hesitation in terms of agricultural and aquatic products. We insist that the free trade agreement should target a reciprocal and win-win result. If the agreement causes great losses to a certain country's industry, it will be very difficult to push forward with the agreement. Therefore, our countries should compromise with each other to reach the expected outcome.

The three countries hold a very influential place on the world stage due to their economic strength, especially their foreign trade, so signing a free trade agreement is very significant. Furthermore, enhancing cooperation through economic integration will help solve the problems we face in political and diplomatic areas. Considering the different situations of the three countries, however, it is hard to predict when and how such an agreement will occur. What I want to stress is that all three countries need to make joint contributions to the establishment of the free trade area.

This year marks the Year of China-ROK Friendly Exchanges. How have the two made progress in terms of cultural exchange?

Cultural cooperation plays an important role in developing the Sino-ROK relationship. Our relationship has advanced greatly during the past 20 years, and I believe cooperation in cultural, historical and artistic areas has contributed to that. Chinese culture spread to the ROK before we set up our diplomatic relationship. Cultural interconnectedness serves as part of the basis for bilateral communication and cooperation.

For the past 20 years, we have been enjoying each other's cultures, even producing concerts and movies together. We not only share one another's cultures, but also create a common culture between us, which is something we should continue to work on for the betterment of our relationship.

Our embassy holds two weeklong friendship activities in Chinese provinces or cities each year. Last year, the activities were held in Wuhan and Zhengzhou, and this year, in Xi'an and Changsha. During these events, ROK enterprises and cultural groups work with their Chinese partners to find cooperative plans to boost bilateral friendship.

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