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Alaa Thabet – Ahram Online
South Korean President Moon Jae-in believes “Egypt is a magnet for global investments with a huge potential for growth”. This is why the two countries signed a comprehensive partnership agreement during President Abdel-Fattah al-Sisi’s visit to Seoul in March 2016.
Moon landed in Cairo on Wednesday, in a two-day visit, from 19 to 21 January. The visit was scheduled to take place in March 2021 but was delayed due to COVID-19 outbreaks.
In this interview, Moon told Al-Ahram daily’s editor, Alaa Thabet, “bilateral trade has increased by 2,000-folds to reach $2.3 Billion in 2021, up from $1.18 Million in 1971”. The President believes his Cairo visit will increase the momentum of cooperation between the two countries; especially in the areas of transportation, manufacturing, construction, military and environmentally friendly industries.
What does Seoul aspire to achieve from the first visit by a South Korean President to Egypt in 16 years?
Seoul is fully aware that Egypt is the cradle of civilisations and a country with a great strategic importance, connecting the Middle East, Africa, and Europe. Egypt is the leader of moderate Islamic culture, being the largest country in terms of population in the Arab region.
In fact, Egypt is attractive for all the countries wishing to cooperate with it, because of its dynamism and great potential for growth.
South Korea strongly supports Egypt on climate change, and we seek to enhance cooperation with Cairo in all fields, based on the comprehensive partnership agreement. The Korean government has chosen Egypt as a priority partner in official development assistance between 2021 and 2025.
How do you see the relationship between Cairo and Seoul, and what are the future plans to cement cooperation?
Egypt and South Korea present a cooperation model based on mutual benefit in manufacturing sites. Some leading Korean companies, such as Samsung, LG and Hyundai Rotem have production bases in Egypt, which contribute to creating job opportunities for Egyptians and work under the banner ‘Made-in-Egypt’.
There is also the Egyptian-Korean Technology Faculty, which was established through a development cooperation project affiliated with the Korea International Cooperation Organisation (KOICA). The faculty is a successful model of cooperation. It targets the graduation of specialised technicians through systematic education, which contributes to enhancing the faculty’s positive image In Egypt.
I hope the economic partnership will boom. Korea aspires to conclude the first free trade agreement in Africa with Egypt.
Korea and Egypt have already cooperated in the field of transportation and energy infrastructure. There is potential to enhance this cooperation through railway development projects. Korea will support the Egyptian government with $312 Million via the Economic Development Cooperation Fund (EDCF) to upgrade the railway lines of Naga Hammadi-High Dam and Naga Hammadi-Luxor.
Korean companies have recently established the largest oil refinery in Egypt, which contributes to reducing Egypt’s dependence on refined energy imports and creating high-quality job opportunities.
Korea, with its technological capabilities and high international standards, will continue to cooperate with Egypt in the pivotal areas of interest to Cairo, such as the underground metro, sea water desalination, and petrochemicals projects.
I believe that there are promising possibilities for cooperation between the two countries in the field of environmentally friendly transportation, such as electric vehicles, hydrogen trains and converting the new Suez Canal locomotives to operate on natural gas. We hope for more cooperation in the areas of digital governance, information and communication technology, culture, tourism, and others.
Do you think the volume of Korean investments in Egypt meets this ambition?
Bilateral trade has increased by 2,000 folds, reaching $2.3 Billion in 2021, up from $1.18 Million in 1971. This is a significant increase compared to the rise in the total volume of Korean trade in the same period, which increased 360 folds. The cumulative Korean investment in Egypt recorded $730 Million by the end of 2021.
What were the repercussions of COVID-19 on the South Korean economy?
The entire world is suffering from the economic impact of the pandemic. South Korea has gained a good international reputation, as a model country to emulate, in combating the pandemic. It protected the lives of its citizens and was able to minimise economic damage through a host of protective measures and not resorting to lockdowns.
The Korean government has directed its efforts towards supporting small businesses which incurred heavy economic losses. It worked in parallel to overcome the crisis and invest for the future. Thanks to these efforts, the Korean economy was able to recover faster than other developed countries and managed to restore its pre-pandemic rates.
Last year, we achieved the highest export rates in the country’s history. We maintained our position among the 10 most powerful economies in the world. It is expected that the per capita gross National income will increase to reach $35,000 in 2021.
We are proud to have excelled in the fields of semiconductors, batteries, bio-industries, hydrogen and other modern industries. I am proud that we were able to turn the crisis into an opportunity to become a stronger country.
No one can predict when the pandemic will be over. The Omicron variant currently tops the list of threats facing Korea but the Korean government, with its people, will overcome the difficulties of the pandemic.
I hope that Egypt will come out of the coronavirus dark tunnel and restore normalcy in the nearest time possible.
Many observers see that Egypt plays an active role in the entry of Chinese and European products into the African market. Will Korea enjoy the same privileges?
I think Seoul and Egypt have achieved mutual benefits. Korea has provided Egypt with an opportunity to enter the Asian market, just as Egypt has provided Korea with the opportunity to enter the African market.
Egypt has maintained its position for five consecutive years as the largest recipient of foreign investment in Africa. It is a vital trade and logistical centre with a wide network of free trade agreements with countries in the Middle East, Africa and Europe.
Meanwhile, Korea was able, through regional comprehensive economic partnership and free trade agreements, to form a wide free trade network with Asian, European, and American countries, which make up 85% of global GDP.
We aspire for more mutual cooperation benefits in the African and Asian markets. Indeed, Korean companies are seeking to expand their markets through Egypt, which is an important strategic centre.
Many Korean companies in Egypt are benefiting from the wide network of free trade agreements which enable Egypt to export their products to the markets of the Middle East, Africa, and Europe. We have recently been looking into cooperation in advancing electric cars, seawater desalination and renewable energy.
As a representative of the friendly Korean people, what is your message to the Egyptian people?
I would like to sincerely thank the Egyptian people for their love of and interest in Korea. I hope that various Korean products, such as underground trains, cars, mobile phones, televisions, etc, could enrich the lives of the Egyptian people. I also hope that the Korean culture, films, music, food, and sports, will further consolidate friendship between the two peoples.
