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Sunday, May 12, 2024

Economic Partnership Between Egypt and South Korea Reaches New Heights

The South Korean investments in Egypt have soared to around USD 845 million  (EGP 41 billion), as of June 2023, reflecting the robust economic ties between the two nations. Ahead of the Korea-Africa Summit 2024 on 4 and 5 June in Korea, the South Korean Ambassador, Kim Yong-Hyun, met with H.E. Dr. Rania A. Al-Mashat, Egypt’s Minister of International Cooperation, to discuss ways to enhance cooperation between South Korea and Egypt. 

The partnership between Egypt and South Korea dates back to 1974, when the Korea Trade-Investment Promotion Agency (KOTRA), affiliated with the Commercial Office of the South Korean Embassy in Egypt, set up its operations in Cairo.

The Director General of the Korea Trade and Investment Promotion Agency in Cairo (KOTRA), Sukho Lee, stated to Ahram Online that the high volume of South Korean investment in Egypt in 2023 was “Pumped by mostly large companies in the manufacturing sector, including Samsung Electronics, LG Electronics, and Hyundai Rotem.” 

South Korea’s investment in Egypt amounted to USD 162.6 million (EGP 7.9 billion) during the fiscal year 2020/2021, and USD 311.6 million (EGP 15 billion) during the fiscal year 2021/2022, representing an increase of 91.6%.

Egypt imported various commodities from South Korea in 2022, including cars and tractors, electrical machinery and appliances, iron, steel, signalizing devices, locomotives, and railway cars, costing over USD 1 billion (EGP 48.6 billion).

“Some of these imports work as feeding items for South Korean companies operating in Egypt,” Lee, explained. He stated that exports to South Korea in 2022 included sugar cane waste, minerals, textiles, clothes, fruits, and cement.

On the commercial level, trade volume between Egypt and South Korea reached USD 3.1 billion (EGP 150.5 billion) in 2022, and USD 3.2 billion (EGP 155.3 billion) in 2023, according to Yong-Hyun.

During the meeting between the Ambassador of South Korea and the Minister of International Cooperation, Yong-Hyun confirmed that Korean companies operating in Egypt are benefiting from the recent positive developments in Egypt’s overall economic situation, paving the way for more companies to invest. He also expressed appreciation for Al-Mashat’s leadership and role in concluding a series of agreements with international partners, including the International Monetary Fund, the European Union, and the World Bank.

The Korea-Africa Summit 2024 is expected to further enhance cooperation between the two countries and empower Korea’s partnership with African countries. Al-Mashat highlighted that the summit represents Korea’s efforts to increase its role in the international community.

She also pointed out that cooperation between Egypt and South Korea has reached an unprecedented level in recent years. Expressing her appreciation for the efforts of the South Korean Embassy in facilitating various joint projects, she affirmed Egypt’s commitment to continue working closely with South Korea.

Kaylie Pferten
Kaylie Pferten
A pilot of submersible crafts in a former life, now married to my husband David and writing about investment advice.

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