Incheon seeks to reshape China trade and SME overseas investment strategies

The Incheon Institute has released research suggesting a strategic shift in how Incheon manages its international economic relations. Regarding China, the institute recommends moving beyond traditional partners like Tianjin and Shandong to focus on emerging high-growth hubs such as Beijing, Shanghai, Shenzhen, Suzhou, and Hangzhou. The report emphasizes that cooperation should expand into advanced sectors including AI, digital economy, and energy transition, shifting from government-led exchanges to practical partnerships involving corporations and research institutions.

Separately, research on local small and medium-sized enterprises (SMEs) indicates a growing intention to invest overseas over the next five years. Surveyed business leaders identified market potential, political stability, and incentives as key decision factors, with Southeast Asia—and specifically Vietnam—emerging as the preferred destination. The institute advises that Incheon should implement a selective support policy that ensures companies maintain core functions, such as R&D and management, within the local region to prevent economic hollowing out during overseas expansion.