ROK biz communities expect Xi's visit to boost trade

Ahead of Chinese President Xi Jinping's state visit to South Korea, local business communities are holding out high expectations.

"South Korea's cosmetics are very popular with Asian women. Those I use are very good, so I came here to buy some more."

"I want to buy some clothes for my parents and Korean cosmetics for my colleagues."

The growing number of Chinese tourists travelling to South Korea is helping break business records at local stores.

Data from department store chain Lotte is suggesting purchases by Chinese tourists make up 80-percent of all foreign purchases.

Despite this, Korean businesses are still hoping for more.

The continued negotiation of a China-South Korean free trade agreement is garnering a lot of interest.

Koo Cheon-seo is the head of the South Korea-China Economic Association.

"I think the most important area in the economic cooperation between South Korea and China is the free trade agreement. Though it hasn't been established yet, it is expected the agreement will be signed this year. President Xi Jinping will pay a visit soon, so we hope the leaders will discuss issues connected to the FTA."

Large Korean companies like Samsung and Hyundai have already established a strong foothold in China over the past 20 years.

And with the restructuring of the Chinese economy underway, Koo Cheon-seo says more and more Korean businesses are looking for opportunities in China.

"Recently the Chinese government pin-pointed seven strategic emerging industries, and has been pushing forward a long-term plan toward energy-saving and environmental protection, biotech, new energy and more. I think if China can work closely with South Korea in these areas, exchange technologies, and learn from each other, it will produce strong synergy and more cooperation."

Chun Ka-lim with Hoseo University says there is also room in the Chinese market for smaller South Korean companies.

"In areas like environmental protection, science and technology and new energy, big companies hold the advantage when it comes to money and technology. As such, small and medium-sized are more focused on China's domestic demands and consumers in areas such as agricultural products, household items and cosmetics. As such, I think South Korean firms are more active than other transnational corporations when it comes to investing in China."

China is currently South Korea's largest trading partner and export market.

South Korea is China's third-largest trading partner and the fifth-largest source of foreign investment for China.