South Korea’s Presidential Committee on Northern Economic Cooperation and business organizations on Thursday launched a private council aimed at expanding economic ties with Russia and helping more local companies to make entry into the vast market.

The inauguration ceremony of the Korea-Russia business council was held at Conrad hotel in Yeouido, western Seoul, inviting 200 officials from 153 business entities including those that are already doing business in Russia such as Hyundai Engineering & Construction Co., Samsung Electronics Co., SK Telecom Co., KT Corp., Korea Electric Power Corporation, and KCC Corp. as well as others interested in advancing into the Eurasia country. The launching ceremony was hosted jointly by the presidential committee and the Korea Chamber of Commerce and Industries (KCCI) and Korea Trade-Investment Promotion Agency (Kotra).

CJ Logistics Corporation, which has been expanding its business in Russia by developing the Arctic sea route and the Russian Far East port, will chair the new council while five companies also familiar with the local market - Posco Daewoo Corp., Hyundai Engineering Co., Lotte Hotel Co., Shindong Enercom Inc., and Korea Trading & Industries Co. - will co-share the deputy positions.

A total of 86 companies have signed up as members of the new council that will hold quarterly meetings and discuss ways to cooperate to advance into the Russia market and promote business.

The KCCI will oversee council operations and Kotra will provide export marketing support to companies hoping to make a foray into the new market.

At the launching event, meanwhile, Russia’s Far East Investment and Export Agency introduced potential investment sectors such as petrochemicals, mineral resources development, and energy, and presented various tax benefits to attract foreign investment.

By Kang Doo-soon and Lee Eun-joo

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