South Korean president to visit China

Lee Myung-Bak (L) will meet Hu Jintao next week for talks

South Korean President Lee Myung-Bak will visit China next week for talks with his counterpart Hu Jintao as the two nations deal with North Korea’s leadership transition, Lee’s office said yesterday.
It said Lee would also meet Premier Wen Jiabao and National People’s Congress chairman Wu Bangguo during his January 9-11 visit.
“The two leaders will discuss how to further develop a bilateral strategic partnership and deepen bilateral cooperation for peace and stability on the Korean peninsula,” Lee’s office said in a statement.
The two will also discuss wider Northeast Asian issues and global cooperation, it added.
Seoul hopes that the visit, Lee’s second to China as president, will deepen ties as the two nations mark the 20th anniversary of diplomatic relations, it said.
Both nations are watching the power transition in the North after the death of its longtime leader Kim Jong-Il on December 17.
The impoverished but nuclear-armed state has urged its people and the military to rally behind his youngest son Jong-Un, proclaiming him the “great successor” and supreme military commander.
China is the North’s main ally and economic prop. It quickly endorsed Jong-Un’s leadership.
China also chairs long-stalled six-party talks on the North’s nuclear disarmament that bring together the two Koreas, the United States, Japan and Russia.
Efforts to start formal talks on a free trade agreement may also be on the agenda. China is South Korea’s largest trade partner, with two-way trade worth USD 188.4 billion in 2010.
Visiting Chinese Vice Premier Li Keqiang called in October for speedier efforts to reach such a pact.

Samsung’s new investment

Seoul yesterday approved Samsung Electronics’ plan to build a new plant in China to produce high-tech memory chips used in tablets and smartphones.
Following the approval, the world’s largest memory chip maker will select a site for the plant and seek Chinese government permission with a view to starting production in 2013, the Ministry of Knowledge Economy said in a statement in Seoul.
South Korean firms need government approval when they build strategic, key or sensitive factories abroad.
Samsung had requested permission for its planned export of key technology relating to NAND flash memory chips. When completed, the plant will produce 10,000 12-inch wafers per month.
The approval comes after a 10-member technology security committee met twice last month to consider Samsung’s need to invest in China and the risks of technology leaks.
Jun Dong-Soo, president of memory business at Samsung’s device solutions, has said the new plant would help the company meet growing demand and strengthen its competitiveness in the memory business.
Demand is weak for DRAM (dynamic random access memory) chips used in personal computers, pushing prices down and giving makers an incentive to adopt more advanced technology.
The flash memory chip market is robust thanks to growing demand for mobile devices such as tablet computers and smartphones.