On October 30 in Jinan, Shandong, China, the 2018 Korea-China Distribution Forum and Gyeonggi Province-Shandong Development Forum took place to foster discussion on cooperation in Korea-China distribution.

This forum was co-hosted by the Gyeonggi Research Institute, Gyeonggi Pyeongtaek Port Corporation, Shandong Institute of Social Science and Shandong Traffic Science Research Institute, and was sponsored by the Gyeonggi Marine and Harbor Policy Division and Yellow Sea Free Economic Zone Authority. At the forum, topics such as the expansion and vitalization of distribution facilities were discussed.

During the first session, Li Jinna, a researcher with the Shandong Traffic Science Research Institute, pointed out that although there are combined freight routes to Korea from six Shandong ports, efficiency and organizational structure improvements in combined freight between Korea and China are needed. To address this, she emphasized that there should be: strengthened standardization of international distribution between Korea and China; modernization of distribution centers in Shandong; an integrated hub for international freights in Northeast Asia; and strengthened cooperation between distribution companies of Korea and China.

As inter-Korean relations are improving and the construction of a transcontinental railroad is under discussion, Cho Eung-rae, a senior researcher with the Gyeonggi Research Institute, suggested the operation of trains that can connect Korea and China. He proposed the phased implementation of the following as necessary: creation of a direct connection system between Korean and Chinese distribution points; prioritized establishment of a truck ferry system; increased efficiency of distribution transport systems between Korea and China for the realization of a 72-hour delivery system; formulation of means by which to achieve win-win cooperation in the distribution industry between Korea and China; and network expansion between companies in the Pyeongtaek Port hinterland and companies in Shandong.

In the second session, Pyeongtaek University Professor Lee Dong-hyun advised that, as Pyeongtaek Port will continue to be a central port for Chinese distribution in Korea, there should be: diversification and expansion of port routes for increasing freight volumes; support for special and regular industries in port hinterlands; development of Korea-China car ferries as a hub of e-commerce; continual pursuit of port sales and combined freight development between Korea and China; and the development of distribution, tourism, and other relevant businesses.

Professor Chen Xiaoquian from the Shandong Institute of Social Science explained that the purchasing patterns of Chinese consumers have changed from simple product purchases to high-quality and customized product purchases, foretelling explosive growth in international e-commerce. Of particular note, in July of 2018, a decision was made at the Chinese State Council Executive Meeting to designate Weihai, in addition to Qingdao, as a comprehensive demonstration zone for international e-commerce, which Chen described as a positive indication for further development.

Professor Chen stated that, in order for e-commerce to develop between Korea and China, there needs to be a review and update of trade management and oversight policies that comply with international rules. He also mentioned that there is a need to garner credibility from foreign e-commerce industries, as well as to establish payment, distribution, and transaction systems that are based on exemplary e-commerce services support systems.

Hong Kwi-sun, head of project operation at the Yellow Sea Free Economic Zone Authority, expressed “…hopes for an increase in positive cooperation between the two regions through this Korea-China Distribution Forum, even though there has been limited interaction between Gyeonggi Province and Shandong over the past two or three years.” Hong also conveyed “…anticipation for creative and diverse ideas and policies to increase distribution and transport between Pyeongtaek Port and the main ports of Shandong.”