In a significant move towards economic engagement, the 'Bongguan' (封關) experiment in Hainan, China, has resulted in a notable increase in business exchanges and investments between South Korean and Chinese firms. On June 26, Zhang Weichang, deputy director of the Hainan Provincial Department of Commerce, announced at a press briefing that since the start of the Bongguan policy, six South Korean companies have decided to invest in Hainan. Moreover, from June onward, a Korean national pavilion will officially open in Haikou, aimed at promoting Korean brands and enterprises in the region.

The 'Bongguan' policy, which commenced on December 18 of the previous year, involves the establishment of a special customs management zone that separates Hainan from mainland China. This policy aims to simplify customs and administrative procedures while exempting certain goods from tariffs and value-added taxes, thereby encouraging foreign direct investment. This approach aligns with President Xi Jinping's broader strategy for external openness, signifying China's intention to enhance its investment climate and attract more foreign enterprises.

The Hainan provincial government reported a 51.1% increase in new investments from the same period last year, with 278 companies making investments by January this year. Six Korean companies spanning various sectors have committed a total of 10 million yuan (approximately 2.1 million USD) in new investments. The Korean national pavilion, developed in collaboration with the Korea-China Federation and the Hainan Trade Promotion Committee, is set to feature around 210 brands and products, including well-known names like Shilla Duty-Free, Dongseong Pharmaceutical, and LG Group. Officials express hope that improved investment environments will continue to attract more South Korean companies to Hainan, fostering mutual growth and development opportunities.