12 February 2023: According to the Cairo workplace of the Korea Trade-Investment Promo Company (KOTRA), South Korea-Egypt trade reached $3.15 billion in 2022, the second-largest in background after $3.17 billion in 2010. Egypt’s exports to Korea additionally got to an all-time high of $1.69 billion, an increase of 161 percent year-on-year. It marked a $220 million surplus in 2022 from a $1 billion trade deficiency in 2021.
Behind-the-scenes of these accomplishments, exports of gas as well as oil items played a decisive function. $810 million of gas and also $760 million of oil item naphtha were exported to Korea, the boost of 705% and 107%, specifically, from the previous year.
Meanwhile, South Korea’s exports to Egypt fell by 13 % on-year to $1.46 billion. Significant export products include synthetic materials, auto, car parts, soft steel plates, as well as semiconductors. The main factors for Korea’s decrease in exports to Egypt are the compulsory L/C actions at the time of importation, which took effect in March in 2014, and also the difficulty of remittances from Egypt.
Investment collaboration in addition to trade is progressively taking place. As of 2022, South Korea made a collective financial investment of concerning $790 million in Egypt, 33 times Egypt’s investment in South Korea, according to the Export-Import Bank of Korea. In 2022, an Oriental company spent about $30 million in Egypt.
Of Korea’s complete investment in Egypt, the manufacturing market accounts for regarding 63%, the greatest percentage among industrial markets. Presently, around 35 Korean firms are proactively taken part in business in Egypt. LG Electronic devices developed a television as well as washing equipment factory in 1990. Samsung Electronic devices built a television manufacturing plant in 2012 and included tablet PC production in 2021, as well as is presently producing some cellphones. These Korean companies purchased Egypt are preparing to broaden their companies additionally. In particular, collaboration in between both nations has come to be better in the area of defence industry and also culture past the economy, via the export of K-9 self-propelled weapons, the supply as well as manufacturing of metro trains for the lines 2 and also 3 in Cairo, and also the building and construction of the El Daba nuclear power plant.
Hong Jin-wook, South Korea’s ambassador to Egypt, stated, “We are trying to strengthen producing capabilities through Egypt’s ‘Egypt Makes Electronics (EME)’ policy and National Development Plan Vision 2030,” adding, “We anticipate Korean firms to actively participate in exporting from Egypt as the hub to neighbor nations via the African Open Market Agreement (AfCFTA), which participated in force in 2019.” He additionally added, “In order for Egypt as well as South Korea to better reinforce teamwork in the area of profession as well as investment, it is essential to apply the treatments for authorizing a ‘profession as well as financial collaboration agreement’ between the two countries as soon as possible.
Last Updated: 13 February 2023
