Logo of Phnom Penh Post newspaper Phnom Penh Post - South Korean agency pushes investment in auto-parts, tech

South Korean agency pushes investment in auto-parts, tech

Content image - Phnom Penh Post
Commerce minister Pann Sorasak poses for a group photo with Yu Jeoung-yeol, president of the Korea Trade and Investment Promotion Agency (KOTRA) after their meeting in the South Korean capital Seoul on January 27. COMMERCE MINISTRY

South Korean agency pushes investment in auto-parts, tech

YU Jeoung-yeol, president of the Korea Trade Investment Promotion Agency (KOTRA), said he is encouraging more investors to do business in Cambodia, especially in the field of vehicle spare-parts.

At a recent meeting in Seoul with a Cambodian delegation led by Minister of Commerce Pan Sorasak, Yu expressed his firm belief that the Cambodia-Korea Free Trade Agreement (CKFTA) will boost trade between the two countries.

“Currently, more than 200 South Korean companies invest in Cambodia, and we are working to attract more, especially in auto or vehicle parts as well as timber products,” Yu said.

Sok Chenda Sophea, secretary-general of the Council for the Development of Cambodia (CDC) who accompanied the minister, praised South Korean investors and strongly encouraged them to consider investing in Cambodia as part of the regional supply chain.

“Korean investment in Cambodia in the past has not only brought much-needed capital and modern technology, but also a strong spirit to overcome obstacles,” he said.

He added that the Kingdom has a favorable environment that makes it easy for Koreans to invest in the country. There are many potential advantages to such a deal, especially the conditions of the CKFTA – which came into effect on December 1 last year – and investment incentives under the framework of new investment laws, which were introduced in October, 2021.

Tan Monivann, vice-president of the Cambodia Chamber of Commerce, said South Korea is a leading nation in the fields of automotive and electronic technology, especially cars, smartphones and other electronic products.

He added that the call for investment comes at a time when the government is preparing a roadmap for the development of the automotive and electronics sectors, which is expected to increase its capacity exponentially in the coming years.

“South Korea is a strong country in the field of automobiles and electronics, as evidenced by the number of their cars and smartphones that we have imported. Until recently, South Korea was probably the most advanced nation when it came to this technology. Although China has caught up to them and perhaps stepped a little ahead, South Korea remains strong in these areas,” he continued.

The government approved the official roadmap for the development of the automotive and electronics sector in Cambodia on December 9 last year. Through this framework, it hopes to increase the export volume in the automotive sector to about $500 million by 2027 and create 10,000 new jobs in the field.

Japan is currently the major source of investment in the automotive sector in Cambodia, with seven car assembly companies operating in the country. The main export markets for their products are Thailand and Japan.

Cambodia will focus on expanding existing opportunities to expand the production of labour-intensive automotive parts for export. These include, among others, electrical wiring looms, seats and simple electric and electronic parts for motorcycle assembly.


  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • PM urges end to ‘baseless’ international Ream base accusations

    Prime Minister Hun Sen urges an end to “baseless” foreign accusations surrounding the development of the Kingdom’s Ream Naval Base, as the US has consistently suggested that the base is being expanded to accommodate a Chinese military presence. Hun Sen renewed his calls while

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the