Korean President Lee Myung-bak on Thursday (May 29) arrived in Qingdao, a major seaport and industrial center in the eastern Chinese province of Shandong, on the second leg of his four-day state visit to China.

Qingdao, which is geographically the closest part of China to the Korean Peninsula, is well-known as a hub of Korean manufacturing companies. Korean-invested companies operating in Qingdao totaled 4,081 as of the end of 2007, accounting for over half of the whole foreign-invested firms here. Including unregistered entities, the number of Korean-invested firms in Qingdao is estimated to reach about 6,000, providing about 450,000 jobs to the local economy.

Lee came to visit Qingdao to see Korean investments in this port city and stress the importance of closer practical economic and industrial cooperation.

On arriving at the Qingdao Liuting International Airport, Lee, first lady Kim Yoon-ok and Korean delegates were greeted by Jiang Daming, governor of Shandong Province, and other ranking officials of the province and Qingdao.

Lee met with Korean business executives based in Qingdao and attended a welcome dinner hosted by Jiang and other provincial leaders.

In the meeting with Korean executives, Lee stressed the need to prepare for the surge of global oil prices to the level of $200 per barrel by the end of the year.

"My government is expected to attain the bulk of its target for petroleum and gas reserves during the first half of next year. Korea’s industrial structure should also be changed in an energy efficient way. The entire nation has to be united to overcome the energy crisis," said Lee.

During his dinner meeting with Shandong provincial officials, Leeagain stressed the geographical proximity between the province and Korea, asking them to extend full support to Korean enterprises seeking to enter this eastern Chinese province.

In response, Governor Jiang said he was deeply impressed by Lee’s decision to visit Sichuan Province to help improve bilateral relationship between the two countries.

On Friday, Lee plans to fly to the earthquake-hit Sichuan Province to deliver his personal consolation and condolences after visiting several Qingdao-based Korean and Chinese industrial facilities.

Prior to his arrival in Qingdao, Lee visited the Beijing Olympics main stadium in downtown Beijing and Hyundai Motor’s joint car manufacturing plant on the outskirts of the Chinese capital. The president expressed deep interest in the Olympic stadium built mostly with iron materials, and wished for the success of the Olympic Games.