December 8, 2018
Fifth Japan-China-Republic of Korea Cooperation Dialogue

Kyukeiren’s Activities related to the JapanChina-South Korea Cooperation

Akira Hirai
Managing Director & Chief Secretary
General Incorporated Associations Kyushu Economic Federation

Contents
1. Introduction
1-1: Kyushu Economic Federation (Kyukeiren)
1-2: Kyushu Economy International (KEI)

2. Summary of the Yellow Sea Rim Economic
Okinawaand Technology Exchange Conference
Overview of (Previous) 16th Annual Conference
2-1: Nov. 2018―16th Kagoshima Conference
2-2: Jan. 2018―Visit to the Shandong Business Office, Tokyo
2-3: Mar. 2018―FOODEX JAPAN Shandong–Kyushu Event

3. MOUs & First Shipments
3-1: Jun. 2018―MOU with Weihai City, Shandong Province
3-2: Jul. 2018―Guests from Weihai and Rongcheng City, Shandong Province
3-3: Aug. 2018―Kyukeiren and Kyushu Agricultural and Marine Products Visit to
Shandong
3-4: Sep. 2018―Guests from Weihai City; First Shipment of Yellowtail

4. Kyukeiren Proposals
21-1. 九州経済連合会 (九経連) Kyushu Economic Federation (Kyukeiren)○ Kyukeiren is an integrated economic organization (industrial organization) headquartered in Kyushu Prefecture and has a base for activities in
Yamaguchi Prefecture. The federation boasts a wide range of members, including private-sector companies and incorporated agricultural, medical andeducational institutions. There are 11 committees charged with revitalizing the economies of Kyushu and Yamaguchi. Kyukeiren compiles opinions fromits member companies and presents them to the government and local municipalities.
○ Collaborating with the Kyushu Governors’ Association and three local economic organizations, Kyukeiren implements and provides cooperation for largescale projects, including hosting the Kyushu Regional Strategic Council, establishing the Kyushu Tourism Promotion Organization, and building
infrastructure (Shinkansen bullet train, highways) in the Kyushu region. In addition, the federation leverages its MOUs with countries in Asia to promoteeconomic exchanges, and is also undertaking the expansion of sales channels for Kyushu agricultural and marine products to Singapore and Hong Kongby working with the Kyushu Agricultural and Marine Products Co., Ltd.
○ Kyushu is said to account for 10% of Japan’s GDP and other economic indicators. On the other hand, in the case of agricultural production, it makes up
20% of Japan’s entire farming output while fish farming represents 40% of national production. However, the people engaging in these industries are
aging and there is shortage of successors to take over these businesses. In light of this, Kyukeiren is pouring energies into the export of agricultural
products to improve farming incomes and to enhance the appeal of the region to get young people who have left the region to return. The Agriculture,
Forestry and Fisheries Committee, along with its planning, forestry and fisheries sections, aims to cooperate with related institutions and organizations
while working to realize its economic goals. In ROK and China, as well as the rest of Asia, which is a growth region, there is an interest in Japanese foodand Japanese agricultural and marine products, the same as in the US, Europe and Australia. In 2017, we held the Yellow Sea Rim Conference inKagoshima to discuss how to expand exports of these products.

Member companies

Secretariat■Staff: 47 people■Divisions: 7

Organization■Est.: 1961
■Chairman: Yutaka Aso (Chairman, Aso Cement Co., Ltd.)■Directors: 14 vice chairman, 12 executive board members (TOTO, JR Kyushu, Kyushu
Electric Power, Okinawa Electric Power, Nishi-Nippon Railroad, Bank of Fukuoka, NishiNippon City Bank, Bank of Saga, Oita Bank, Higo Bank, Miyazaki Bank, Kagoshima Bank,
Eighteenth Bank , Yamaguchi Bank , Kyudenko, Kyushu University, Toyota Motor Kyushu,
Yaskawa Electric, Bridgestone, etc.), 1 senior managing director and 1 managing director■Committees: 11 (Energy Resources-Environment, Industrial Promotion, Tourism,
Agriculture, Forestry and Fisheries, Information and Communication, Transportation,
International, Administrative and Financial, Declining Birthrate and Aging Population・
Employment, Kanmon Cooperation and Regional (8))(General Administration, Researchand Planning, Infrastructure,
Agriculture, Forestry and Fisheries,
Industrial Promotion, Tourism andServices, and International Affairs)■Address: Denki Building Kyosokan,
Chuo-ku, Fukuoka3

1-2 九州経済国際化推進機構 Kyushu Economy International (KEI)○ Kyushu Economy International (KEI) was established in July 2001 as a core international economic exchange organizationin Kyushu that promotes cooperation among local governments, economic bodies, private companies and other entities
within the region.
○ KEI aims to revitalize Kyushu and trigger its autonomous development through international exchanges in industry, tourism,
human resources and more. To this end, KEI publicizes comprehensive information on Kyushu’s industrial environment,
tourism resources, and other appealing areas. Alongside this, its goal is to promote the creation of innovation and wellbalanced regional development through industrial exchange and by inviting domestic and overseas companies to set up
operations in the region.

Organization
Composed of 36 institutions, including prefectural governments,
ordinance-designated cities, economic group, and private-sector
companies[Members]■Chairman:
Chairman of Kyukeiren■Vice-chairman: Chairman of Kyushu Federation of Chambers ofCommerce and Industry■Members: prefectural governors, ordinance-designated city
majors, heads of economic groups and private-sector
companies[Board of Governor members]■Director: Senior managing director of Kyukeiren■Members: GMs or bureau chiefs of including prefectural
governments and ordinance-designated cities, directors of
economic groups, etc.
□Supporting organizations: JETRO, Development Bank of Japan,etc.
□Advisors:
Kyushu Bureau Economy, Trade and Industry
Kyushu District Transport Bureau of Ministry of Land,
Infrastructure, Transport and Tourism (MLIT)□Supervisors: Organization for Small & Medium Enterprises andRegional Innovation and Kyushu Electric Power□Secretariat: Kyukeiren, Kyushu Bureau Economy, Trade andIndustry

Business profile
1. Planning and arrangements for internationalization strategies, etc.
－Discussing surveys and plans deemed useful and effective when conductedaround Kyushu
2. Creation and sharing of information «Imparting information about Kyushu»－Imparting information about the investment environment and economyrelated programs in Kyushu through the website and PR sources
3. Industrial exchange «Industrial exchange between Kyushu and foreigncountries»－(1) Programs for economic and business exchanges with Asia (targeting the
Yellow Sea Rim Economic Zone, China, South Korea, and ASEAN); (2)Regarding the sharing of recent information about overseas locations andmarket trends and methods for using support programs, provide overseas
business and economic information through seminars, etc.; (3) Programs forsupporting overseas development, including participating in trade shows abroad,and through business talks with buyers specializing in foreign markets, toexpand sales channels to Asia and support entry into markets in Asia.
4. Stimulating the establishment of business «Support for the invitation ofoverseas enterprises»－Holding business invitation seminars and workshops targeting decisionmakers to promote the effective invitation of overseas enterprises for therevitalization of the regional economy
5. Human exchange «Relationship building with international students»－Holding networking events and job-hunting interview sessions to promotemutual understanding and continued relationships with international students,
who will be the bridge between Kyushu-based companies operating abroad andforeign countries

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機密性○
2-1-(1): Summary of Yellow Sea Rim Economic and. Technology Exchange Conference○ The objective is to create new value by combining new needs with seeds and linking this to thegrowth dynamism in East Asia and the Yellow Sea Rim, including ROK and China, so thatindustries and companies in Kyushu can secure global competitiveness and continue toachieve growth.
○ In light of this goal, from March 2001 the Kyushu region has been hosting the Yellow Sea Rim
Economic and. Technology Exchange Conference to kindle more in-depth economic exchanges
in the region based on partnerships with the central governments of and economic
organizations in the ROK and China.
○ The conference is gaining attention from the top leaders in these three countries as a platform
to sustain the economic exchanges between Japan, the ROK and China and also as a key
region-level conference.
Yellow Sea region

×This regional economic area encompasses thecoastline areas from Shanghai to Dalian in
China, and from Incheon to Busan in the ROK,
and Kyushu in Japan.
The population in the area is around 400 million
people (about 5% of the world population). The
area accounts for around 5% of the world’s
GDP, outperforming the ASEAN region (which
accounts for 2.3%).

Actively evaluated at high-levelgovernment meetings
At the 11th China, ROK and Japan Economic
and Trade Ministers' Meeting, held on October
29, 2016 in Tokyo, a joint statement was
released praising the results produced by the
Yellow Sea Rim Economic and. Technology
Exchange Conference thus far. In addition, theconference was also mentioned in the appendix
of the joint declaration at the Seventh JapanChina-ROK Trilateral Summit meeting, held on
May 9, 2018 in Tokyo.

[Prior meeting dates andlocations]
1st: March 2001
Fukuoka, Japan
2nd: October 2002
Jeonju, ROK
3rd: September 2003
Weihai, China
4th: October 2004
Miyazaki, Japan
5th: November 2005
Daejeon, ROK
6th: November 2006
Rizhao, China
7th: November 2007
Kumamoto, Japan
8th: October 2008
Incheon, ROK
9th: July 2009
Yantai, China
10th: October 2010
Kitakyushu, Japan
11th: November 2011
Daejeon, ROK
12th: November 2013
Lianyungang, China
13th: November 2014
Nagasaki, Japan
14th: November 2015
Busan, ROK
15th: July 2016
Yancheng, China
16th: November 2017
Kagoshima, Japan

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2-1-(2): Overview of (Previous) 16th Annual Conference(1) Meeting
Date:
November 30, 2017 (Thu.), 14:00–17:00
Venue:
Shiroyama Hotel, Kagoshima
Themes: Promoting exchanges between regions
Creating new industries and markets through innovation
Details: Participants from Kyushu, ROK and China introduced cases and offeredproposals for economic and technological exchanges to promote trade,investment and technological exchanges in the Yellow Sea Rim. They sharein the same vision and discussed measures for realizing this vision.
(1) Report from bureau director meeting on Yellow Sea Trilateral Cooperation(Director Takahashi)(2) Summary of joint operations/projects(3) Introduction of case examples by the Trilateral Cooperation Secretariat,
an international organization
The role of the Trilateral Cooperation Secretariat in strengthening trilateral
cooperation with businesses and local governments in Japan, ROK and
China(4) Introduce cases and proposals for trilateral economic and technologicalexchanges(5) Introduction of next conference location (Cholla Buk-do Province, ROK）
(6) Yellow Sea Rim Economic and Technology Exchange awards ceremony(7) Conclusion (Chairman Aso)

Overall view of conferenceAwards ceremony*Cooperation proposal and presenters
・(Kyushu) Expanding the Yellow Sea zone (Dalian) anddeveloping in-depth regional exchanges
Kunio Kiyomoto, President, Kiyomoto Co., Ltd.
・(ROK) Propose collaborations to energize global
tourism exchanges between the ROK, China and Japanto promote an expansion in the Northeast Asia tourism
market and to increase mutual understanding
Kim Hyunchul, Chief of eBiz Strategy Office, Korea
International Trade Association (KITA)
・(China) Shandong, a model province for the quality
and safety of exporting food and agricultural products, a
new driving force in the Yellow Sea regional
cooperation between Japan, ROK and China
Lu Wei, Deputy Director General, Department ofCommerce, Shandong
・(Kyushu) Overseas development by Kagoshima
companies mainly in the Yellow Sea zone
Ichiro Fukutome, Economic Research Manager,
Kyushu Economic Research Institute・(ROK) Taking on global markets from the Yellow Sea
Hideo Ouchi, W-Scope Corp.
・(China) Promote the Liaoning Free Trade Zone andShenfu New District to fortify economic tradecooperation between Liaoning, China, Japan, and the
ROK
Wang Jingming, Deputy Director-General, Liaoning
Commerce Department*Winners of the Yellow Sea award (corporate, individual,
regional municipality, and economy organization
categories)・ (Kyushu) Eco-Factory Co., Ltd.
・ (Kyushu) Kyushu Economic Research Center・ (ROK) W-Scope Korea
・ (ROK) Korea Institute for International Economic
Policy・ (China) China (Liaoning) Pilot Free Trade Zone,
Yingkuo district management committee・ (China) Yantai Investment Development Board

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2-1-(3): Nov. 2018―16th Kagoshima Conference
Background○ Deputy Director General Lu of the Department of Commerce in Shandong was
the presenter from the China-side. Her presentation was on Shandong as aquality and safety model for exporting food and agricultural products, which are
new impetus for Japan-ROK-China cooperation in the Yellow Sea area.
○ Chairman Aso of Kyukeiren had previously pursued exporting agricultural, forestry
and fish products to China and the ROK. He proposed and approved carrying out
concrete cooperation going forward.

(Summary)
•
•
•

•
•

•
•

•

Lu Wei, deputy director general of the
Department of Commerce, Shandong

The population of Shandong Province is 100 million (second largest in China). ROK and Japan rank as Shandong’s No.2 and No. 5
trade partners, respectively.
Shandong is China’s first model for the quality and safety for exporting food and agricultural products. We aim to make Shandong a
new driving force in the cooperation by further improving the connection between the agricultural products of the three countries.
In Shandong 5,946 standard sites have been set up for food and agricultural products. More than 99% of all food and agricultural
products pass quarantine inspection. In 2016, the export of agricultural products from the province reached the RMB100 billion-level. It
continues to be the top exporter of agricultural goods in China, accounting for one-fourth of the country’s total exports. In addition, foodexports from Shandong to Japan account for more than 40% of China’s total exports to Japan.
Vice Premier Wang Yang highly praised Shandong for developing China’s first quality and safety model for exporting food products
and agricultural goods. GM Kaneyama of the commerce department also wants to quickly deploy the outstanding experience andmethods of Shandong to other regions.
For a total of 15 times over eight consecutive years, Shandong has been showcasing its activities as a model province for agricultural
goods in various countries, include the ROK and Japan. More than 100 companies from Shandong participated in FOODEX JAPAN
as well as the Busan International Seafood & Fisheries Expo among other trade fairs. In March 2018, officials from Shandong visited
Wakayama Prefecture to conduct business talks on collaboration matching. 37 companies from Shandong that are looking for
products to import from Japan met with 20 companies from Wakayama Prefecture.
Simplification of customs procedures. A mutual approval system is being tested with the ROK for quarantine certificates. Progress was
also made in collaborations related to mutual approval of AEOs.
The agricultural food processing industry in Kyushu is developed. Under the framework of the Yellow Sea Rim collaborations,
Shandong aims to build a cooperative relationship with Kyushu. The province also wants to hold exchanges with industrial groups andcompanies. I encourage interested parties in Japan and the ROK to visit Shandong and engage in exchanges. We will do our best toaccommodate you.
The three countries have designated Shandong Province and institutions in Japan and the ROK to form a working group on
cooperation food and agricultural products. We propose a model for cooperation between SMEs in the three companies under the
Yellow Sea Rim framework.

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2-2: Jan. 2018―Visit to the Shandong Business Office, Tokyo
Background○ Meeting in Tokyo with the Shandong government representative in Japan for economy and trade
Date:
January 18, 2018
Venue:
Shandong government’s representative office for economy and trade in Japan (Kameido,
Koto-ku)
Attendees: China side: Representative Guo Quantao, Liu Sheng, Operations GM
Japan side: Managing Director Hirai, Kyukeiren, GM Oda, Agriculture, Forestry and Fisheries,
Kyukeiren, and GM Ando, International Affairs
Shandong government’s representative
Kyushu Agricultural and Marine Products: GM Chen Hai
office for economy and trade in Japan(Summary) Several exhibitors and buyers came from Shandong to participate in FOODEX JAPAN 2018 (43rd International Food andBeverage Exhibition), which was held March 6–9, 2018 at Makuhari Messe. We seized this opportunity to make a proposal
to the Shandong-side. We presented a plan to gather exhibitors from both Shandong and Kyushu and to match them up
with one another.
 *CCIC-Japan is in Tokyo and can export product that has passed quarantine. These operations were subcontracted out to
CCIC by the Department of Commerce in Shandong (other provinces have yet to follow). We aim to convey the benefits ofconducting quarantine in Japan rather than at ports in China.
*CCIC: China Certification & Inspection (Group) Co., Ltd.
 Shandong is interested in Japanese sea bream. Steamed sea bream is a highly-valued, high-end dish served forauspicious occasions. There is a seafood wholesale market in the free trade zone in Qingdao. Japanese marine products
are welcome. In Shandong, which is at the same latitude at Japan, a sufficient amount of vegetables is being produced
and supplied. There is more demand for seafood products from Japan.
 We are putting the final touches on the proposal with Deputy Director Lu, who returned to China just last week. Deputy
Director Lu will be coming back to Japan so we want her to meet with Chairman Aso on the day she arrives. The
Shandong provincial government will act as bridge between the two. Kyushu companies will get the opportunity to learn
what route to use for export and Shandong will get see what Kyushu has to offer. First we need to set up the meeting. We
can connect this to business transactions with individual companies afterwards.
 There is major potential for sea bream as there are definitely buyers. There will be less quality risk if quarantine is handled
in Japan and the fish is frozen and transported by ship. If we can create a success case with the sea bream, then we canbreak into the market and expect to see a ripple effect for other products.
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2-3: Mar. 2018―FOODEX JAPAN Shandong–Kyushu Event
Shandong & Kyushu Food and Agricultural Product Matching Business Meeting
Date:
March 9, 2018 (Fri.), 13:00–15:30
Venue:
International Exhibition Hall, Makuhari Messe, Chiba Prefecture
Description: A product matching business meeting at the FOODEX JAPAN 2018 (43rd International Food andBeverage Exhibition). Companies from Shandong and Kyushu participated in the meeting.
(1) Greeting and lecture by main sponsors
Department of Commerce of Shandong Province(Lu Wei, Deputy Director-general)
Kyukeiren (Chairman Aso, Managing Director Hirai)(2) Introduction of import model “外検内放” (customs clearance icarriedout by an external foreign authority, and the result is used byan internal Chinese authority)(China Certification & Inspection（Group）Co., Ltd.)(3) Introduction of Japan-China-ROK cross-border EC (food)
distribution
Weihai Municipal Bureau of Commerce(4) High-speed channels for Japan-China-ROK cross-border EC
distribution
Weihai Yijia Ecommerce, Ltd.
(5) Introduction of current production and export trends for sea breamin Kyushu
Norinchukin Bank, Kumamoto Branch(6) Signed MOU on comprehensive business partnership
Shandong Aixi Ecommerce, Ltd.
Kyushu Agricultural and Marine Products Co., Ld.
(7) Matching business meeting
Parties from Shandong companies
Parties from Kyushu companies

93-1: Jun. 2018―MOU with Weihai City, Shandong Province
Kyukeiren & Kyushu Agricultural and Marine
Products visit Shandong
Date: June 21 (Thu) -24 (Sun), 2018
Description: We timed our visit to Shandong to coincide with the
9th Weihai International Food Exposition. On June 22 (Fri), we
signed an MOU on food distribution between Japan and China at
the Weihai International Exhibition Center (WIEC), where theexpo was held. Signatures including Kyukeiren, the Departmentof Commerce of Shandong Province, and the municipal
government of Weihai. The MOU confirmed that related parties
aimed to cooperate to produce quick and concrete results.

Director She Chunming of the Department ofCommerce of Shandong Province andChairman Aso of the Kyukeiren

Tour of Port of Weihai; exchanging opinionswith members of the Management Committeeof Weihai Economic and Technological
Development Zone and Weihai Port Group

Kyukeiren booth, KYUSYU CHOKUHAN, at
the International Food Expo10

3-2. Guests from Weihai and Rongcheng City, Shandong Province
Deputy Major and entourage from Weihai and Rongcheng (Shandong) visit Fukuoka

Date: July 24, 2018 (Tue)
Details: When we visited Shandong Province in June, we signed an MOU whichcalled for closer collaborations between our two regions and a pledge to pay mutual
visits. In accordance with this, Deputy Mayor Hu Xiaofei from Weihai and Rongcheng
City, Shandong Province, and associates from Rongcheng Taixiang Food Products
Co., Ltd., a major food processor, distributor, and import-exporter from the same city,
visited Fukuoka.

With the cooperation of the Seaport and Airport Bureau of Fukuoka City, we gave ourguests a tour which included the container terminal at the Port of Hakata andFukuoka City Central Wholesale Market. We exchanged opinions on the benefits formutually importing and exporting products and on the issues faced in expanding
distribution of agricultural and marine products which are strengths for both our
regions.
A dinner party was held where our guests were able to do a taste testing of Kyushu
farmed yellowtail.

113-3. Aug. 2018―Kyukeiren & Kyushu Agricultural and Marine Products Visit to Shandong
Details○ First visit to Shandong after signing MOU. Owing to visit by guests from Weihai and Rongcheng City in July, we toured amarine products company, etc. and held business talks.
Date: August 8-11, 2018
Location: Weihai and Rongcheng City, Shandong Province
Attendees: China side: Representatives from each company, and from Weihai Municipal Bureau of Commerce, Guo
Liangtian, Deputy Director General, Liu Peng, manager, and Liu Yunyi
Japan side: Director Hirose and Vice-director Yano, Agriculture, Forestry and Fisheries, Kyukeiren
Kyushu Agricultural and Marine Products: President Oda, General Affairs Planning: GM Chen Hai(Summary)О Shandong Xin Dadong Co., Ltd.
Portfolio contains a wide range of unique Kyushu products
Expiration date for Japanese products is too short so would likea longer sell-by period (9-12 months)
Desired products: Water ☆, soy sauce 〇, recommended
Kyushu items, children’s toothbrushes◎О Rongcheng Taixiang Food Products Co., Ltd.
Mainly considering export of yellowtail and cooked rice packs,
we want to develop track record
Continuing to examine pricing
о Jiajiayue (JJY)
Largest supermarket operator in Weihai with 700 outlets
throughout Shandong
Plan to submit estimate for marine products for consideration

Rongcheng Tisiang Food
Jiajiayueо Weihai Port Group Co., Ltd. (WHPG)
Wants to tour forest region in September when they visit
Want to expand timber exports by using the strengths of the Portof Weihai
о Weihai Municipal Bureau of Commerce
Looking to expand opportunities for Japanese and Chinesecompanies since signing MOU in June
Want the bureau to introduce activities being conducted in
Shandong in Kyushu

Weihai Port Group
Direct Qiao, Weihai Municipal Bureau of12

3-4. September 2018: Guests from Weihai; First Shipment of Kyushu Yellowtail
Overview of departure ceremony for yellowtail
 Date: Product: Volume:
 Transport:

 Venue:

September 11, 2018, 7:30 am
Whole Kagoshima farmed yellowtail(Buri-Oh, Azuma-cho Fishery Cooperative)
37 cases (1 case = 2 fish X 3.5kg each)(Total weight: approx. 260kg)
Depart Fukuoka Airport at 14:40 →Arrive at Qingdao Airport at 16:00
on flight MU536
Ceremony held at Fukuoka Airport Cargo
Terminal zone, in front of the customers
clearance terminal

Press conference (highlights)

Sep
Jun

 Export to the massive market in China has begun
Aim to make this good news for Kyushu’s primary industries
 Weihai City, Shandong Province will serve as the gateway tothe market in China for yellowtail and other high-quality
Japanese seafood products

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4. Kyukeiren Proposals for the Yellow Sea Rim Conference
Examining logistics to access new markets◎Establish a shipping route that passes throughWeihai–Incheon–Gunsan–Busan–Fukuoka◎Establish a scheduled air route between Weihai–
Fukuoka (Kitakyushu, Saga)◎Build economic exchange goodwill city and friendshipcity ties with Shandong Province, ROK and Fukuoka

ソウル
Seoul

威海
Weihai
釜山
Busan
連雲港
Lianyungang
太倉Taicang

福岡
Fukuoka◎Establish a Europe route along Kitakyushu/Fukuoka–
ROK–Shandong (Weihai)/Jiangsu (Lianyungang Portand the Port of Taicang)–Europe
太倉港
PORT OF TAICANG

釜山港
PORT OF BUSAN

14博多港
PORT OF HAKATA

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