Cambodia & Korea Strengthen Trade Ties with US$751m Volume & New Six MoUs

• Sommana Yan
• 18 May 2024
• Uncategorized
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Cambodia and South Korea reaffirmed their strong trade partnership with a bilateral trade volume reaching US$751 million in 2023 and the signing of six Memoranda of Understanding (MoUs) on 16 May 2024. The MoU signing ceremony, presided over by Cambodian Prime Minister Hun Manet and South Korean President Yoon Suk Yeol in Seoul, signifies a commitment to further collaboration across various sectors.

These MoUs aim to solidify and expand the economic ties between the two nations. Key highlights include:

1. Financing and Investment: An amended Project Framework strengthens cooperation on economic development projects funded by South Korea’s Economic Development Cooperation Fund from 2022 to 2026.
2. Additionally, a separate MoU between Cambodia’s CDC and South Korea’s Ministry of Commerce, Industry & Energy fosters deeper investment cooperation.
3. Intellectual Property and Skills Development: Collaboration on intellectual property rights is addressed through an MoU between Cambodia’s Ministry of Commerce and South Korea’s Intellectual Property Unit.
4. Furthermore, a Skills Development Program will be established through a joint effort between the Cambodian government and the Korea International Cooperation Agency.
5. Trade Facilitation and Infrastructure Development: A Letter of Intent paves the way for enhanced cooperation on drug control between Cambodia’s General Department of Customs and Excise and South Korea’s Customs Administration.
6. Moreover, a Concessional Loan Agreement with the Export-Import Bank of Korea secures funding for Phase 4 of Cambodia’s Rural Road Improvement Project.

The robust trade relationship between Cambodia and South Korea is further underscored by over US$5 billion in total Korean foreign direct investment (FDI) and an additional US$30 million in 2023 alone. The recently signed Cambodia-Korea Free Trade Agreement (CKFTA) in December 2022 further incentivises Korean investment and import-export activities by leveraging Cambodia’s favourable investment policies.

By strengthening trade ties through these MoUs and building on a solid foundation of investment, Cambodia and South Korea are poised for continued economic cooperation and mutual growth.

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