Logo of Phnom Penh Post newspaper Phnom Penh Post - South Korea seeks to improve relations with Asean states

South Korea seeks to improve relations with Asean states

Content image - Phnom Penh Post
Asean-Korea Centre secretary-general Lee Hyuk gives the opening talk at the Asean Connectivity Forum. Photo supplied

South Korea seeks to improve relations with Asean states

The Republic of Korea is moving to improve its relations with Asean countries, and has pledged to boost investments in infrastructure in the region to compete with China and Japan, the Secretary-General of the Asean-Korea Centre said.

The pledge was made during the three days of the sixth Asean connectivity forum in Seoul this week.

Lee Hyuk, secretary-general at the Asean-Korea Centre, which organised the event, said the Korean government will raise $100 million by 2022 to create the “Asean-Korea Infrastructure Fund” to promote mutual cooperation in four key areas, including transportation, energy, water resources and smart cities.

“Asean connectivity underpins the community-building process and will aid Asean member states to further integrate themselves by creating a competitive region, increase innovation and resilience, and provide a long-term foundation for inclusive and equitable growth in the region,” Lee said.

However, while noting that Asean countries have continuously stepped up efforts to enhance physical connectivity, Lee said many competitive Korean companies are still struggling to compete with the Chinese and Japanese to secure projects.

“With the recent trend of public-private partnerships (PPP), it is important for private [Korean] companies to equip themselves with the capacity for project financing,” he said.

“Against this backdrop, this year’s forum is timely and meaningful and will provide the Korean business community with substantial information on successful project financing and open up wider opportunities for them to participate in connectivity-related infrastructure projects in the region,” Lee said.

Home to 640 million people, Asean as a region has a $2.8 trillion GDP with a trading volume of $2.6 trillion and average annual growth of five per cent. The Korean government seeks to increase bilateral trade between the two countries to $200 billion by 2020.

Asean is currently is the world’s fifth-largest economic power and plays a key role in the global economy. The region is Korea’s second largest trade partner with bilateral trade volume reaching nearly $150 billion last year.

It is also Korea’s third largest investment destination at $5 billion in 2016, according to a Korean Customs Service report.

The report says Cambodia stood at seventh place as a Korean investment destination, valued at $137 million last year. Vietnam and Singapore stood at the top, attracting more than $1 billion each.

The trade volume between Cambodia and Korea reached more than $860 million last year. Cambodian exports to Korea were valued at $261 million while imports topped $603 million, the figures show.

During the forum, each Asean country demonstrated its potential infrastructure investments in order to attract more Korean investors.

Cambodia positioned itself as an Asean hub for transportation, planning six logistics complexes and 25 sub-complexes nationwide under the PPP policy.

The Cambodian Ministry of Public Works and Transport director-general Chhieng Pich said: “If you invest in Cambodia, you not only [serve] 15 million people, instead you will serve more than 600 million.”

Major Cambodian infrastructure projects are currently granted to the Chinese such as the $1.9 billion expressway project from Phnom Penh to Sihanoukville.

Lee said while Cambodia is a potential destination for Korean companies, the country should have some kind of balance.

“I think there is too much Chinese domination of Cambodia and I think too much dependence on one country is always risky,” he said.

However, Pich said the Kingdom’s plans for railway linkage to Vietnam will be open under the PPPs.

“Another project is the railway linkage from Phnom Penh to the Vietnamese border, which is a missing link between Asean and Kunming. It is top priority and we are working with private investments, especially with PPPs,” he said.

According to the Asean-Korea Centre, infrastructure demand in Asean countries is projected to amount of about $3.3 trillion by 2030.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Phnom Penh underpass opens to ease traffic

    Prime Minister Hun Sen has announced a temporary opening of the 488m underpass at the Chaom Chao roundabout in Phnom Penh’s Por Sen Chey district, which was recently completed to connect traffic from National Road 4 to Russian Federation Blvd. The move is to reduce

  • ‘No chance Cambodia booted out of ASEAN’

    A group of former and current Cambodian diplomats on Tuesday fired back at retired Singaporean diplomat Bihalari Kausikan after he proposed that ASEAN dismiss Cambodia and Laos from the bloc. In an open letter, the Cambodian diplomats said Kausikan’s remarks were made from a

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • Woman seeks answers after arrest of American partner

    Filipina Lalaine de Guzman, 48, is demanding answers for the detention of her American partner by Cambodian immigration officers after he was arrested at their home almost 90 days ago. She said without an arrest warrant or proffering any criminal charges, Stephen Sidney Greatsinger, 56, is being detained

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital