Logo of Phnom Penh Post newspaper Phnom Penh Post - Korea trade nears $1 billion

Korea trade nears $1 billion

Workers prepare clothing for export at a garment factory in Phnom Penh.
Workers prepare clothing for export at a garment factory in Phnom Penh last month. A new loan from South Korea may encourage Cambodia to diversify its exports. PHA LINA

Korea trade nears $1 billion

BILATERAL trade between Cambodia and South Korea nearly reached the $1 billion dollar realm in 2012, a hike of nearly 100 per cent from the year before, senior officials said yesterday.

The figure was announced after Foreign Minister Hor Namhong and South Korea’s ambassador to Cambodia Kim Han-soo signed an agreement for a new $200 million loan from South Korea to support infrastructure projects.

According to official data from the Korea Trade-Investment Promotion Agency, total bilateral trade between the two countries stood at nearly $540 million in 2011.

Foreign Affairs spokesman Koy Koung said that Cambodia imported from Korea more than $900 million in 2012, while Cambodia exported upwards of $70 million.

In the past, the Korean Chamber of Commerce in Cambodia has urged the country to diversify its exports to Korea.

The products traditionally sold to South Korea have included rubber, cotton, seafood and some garment wear.

But the country still lags behind the United States, Cambodia’s biggest trade market. Government data show that in the first five months of this year, trade between the two increased 1.6 per cent to $1.2 billion compared with the same period last year.

Cambodia’s imports from South Korea include dyes, worn clothing, cigarettes and parts of the internal combustion engine.

Last year, South Korea replaced Britain as the largest investor in Cambodia, with about $287 million injected, 12.5 per cent of the total foreign direct investment, according to official data from the Council for the Development of Cambodia.

Grouped together, the three main economic powers in Asia, Japan, China and South Korea, were the largest investors in Cambodia during the country’s chairmanship of ASEAN in 2012, with total investment about $762 million. In terms of visitors to Cambodia, Kuong said South Korea is ranked No 2.

The new loan inked yesterday is intended to help fund road development in the provinces, among other projects

Since re-establishing diplomatic ties with Cambodia in 1996, South Korea says that its government has committed $378 million in concessional projects and $105 million of grant assistance.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the