[Courtesy of LG Chem]
SEOUL -- South Korea urged fair competition in the Chinese market for electric car batteries Thursday at the first high-level economic meeting since the two countries agreed in October last year to put relations back on track.
This year, China has gradually eased trade and other restrictions imposed against South Korea in retaliation for the deployment of a U.S. missile shield, but there has been no change in its policy stance of excluding electric vehicles equipped with South Korean batteries from a list of eco-friendly car models eligible for subsidies.
"Competition and cooperation between the two countries should be done freely and fairly in various matters such as electric car batteries," Trade, Industry and Energy Minister Paik Un-gyu said in his opening remarks at the meeting in Seoul.
The meeting has been held every two years since 2014. The Chinese delegation at Thursday's meeting was led by Industry, Information and Technology Minister Miao Wei.
LG Chem, one of South Korea's top battery makers, started the operation of its EV battery plant in China in 2015, eyeing growing demand on the back of Beijing's plans to tackle air pollution by introducing more eco-friendly cars. But LG Chem and its domestic rival Samsung SDI had to revise their business strategy because of Beijing's decision to stop subsidizing EV manufacturers using parts from foreign manufacturers.
"Especially, we think that there is a high possibility of cooperation between the two countries in electric and other eco-friendly cars," Paik said, calling for bilateral cooperation to lead changes in the global auto market.
"In accordance with a new trend, South Korea and China need to escape from the existing partnership centered on parts and materials and develop industrial cooperation as a joint partner in the new industrial sector," he said.
reporter
Lim Chang-won
cwlim34@ajunews.com
