East China's Jiangsu Province is seeing more businesses from the Republic of Korea (ROK) set up operations there, with an industrial park in Yancheng City attracting nearly 1,000 ROK projects so far.
Yancheng sits just across the sea from the ROK, and it is only about a two-hour flight from Seoul. The automobile industry is one of Yancheng's key pillars.
A ROK auto parts factory has been running in China since 2002, and has over 1,000 employees in Yancheng.
One of the reasons why the company chose the city is because it hosts a complete supply chain in the automobile industry.
In fact, their major buyer is just next door.
And what's more impressive is that their products are transferred directly through a corridor linking the two companies.
That greatly saves time and transportation cost.
"The presence of Yueda Kia Motors has fostered the formation of an industrial chain involving numerous automotive-related companies in Yancheng City and its surrounding areas, ensuring a crucial supply advantage in manufacturing. Because of this, our company has also been able to secure stable production capacity by receiving timely supplies of components essential for product manufacturing," said Nam Yoon Soo, president of Jiangsu Mobis Automotive Parts Co., Ltd.
So far, ROK companies have invested over 13 billion U.S. dollars in Yancheng, and the country is now the largest trading partner to the city.
As China develops rapidly in new energy vehicles, that growth is also reshaping the city's industrial layout.
In the first three quarters of 2025, over 40 percent of Yancheng's automobiles were new energy vehicles.
A global shift is also attracting new energy companies to this city.
In 2019, SK On, an electric vehicle battery subsidiary of ROK's SK Innovation, settled in Yancheng. Just two years later, it announced that it would invest 2.53 billion U.S. dollars to build its fourth and largest battery plant in China.
"China is the world's largest electric vehicle and battery market. This rapid growth and development are attributed not only to its robust and complete supply chain, but also to the Chinese government's proactive new energy policies. China's excellent supply chain and infrastructure have provided a solid foundation for stable business operations not only for Chinese companies, but also for various global companies, including SK," said Park Uisub, director of International Cooperation, SK On China.
"Next, we will leverage the advantages of the open platform of the national-level China-ROK Industrial Park, steadfastly deepen cooperation with the ROK, and continuously strengthen mutually beneficial partnerships with enterprises and institutions from the ROK," said Yin Depei, director of the Construction Office of the China-ROK Industrial Park (Yancheng).
In 2015, China and the ROK signed a free trade agreement, and Yancheng was chosen as the site of an industrial park featuring ROK enterprises.
In 2017, the State Council officially agreed the establishment of the park in the city.
Industrial park in east China's Yancheng boosts ROK businesses
