Korea speeding up entry into Cuba

Kim Jae-hong, CEO of the Korea Trade-Investment Promotion Agency (KOTRA), speaks at the 1st Cuba-Korea Business Committee meeting in Havana, Sunday. Kim said the state-run export promoter will mobilize all its resources to help Korean companies, particularly those in the energy and healthcare sectors, make inroads into the Caribbean nation.
/ Courtesy of KOTRA

By Lee Hyo-sik

Korea is stepping up its entry into Cuba to seize more business opportunities in the areas of construction, automobiles, energy and healthcare, ahead of Japan, China and other competitors.

Asia's fourth-largest economy has sent its largest business delegation to the Caribbean nation, while organizing a trade fair featuring a range of made-in-Korea products and other events to promote business exchanges between the two.

The Korea Trade-Investment Promotion Agency (KOTRA) said Monday that Samsung Electronics, Hyundai Motor and 72 other large and small businesses took part in the 2016 Korea Week in Cuba to explore opportunities in the country, which recently emerged from isolation. Cuba has been opening its market since July 2015 when it forged formal diplomatic ties with the United States.

The number of Korean companies attending the trade fair, which began on Oct. 30 and continues through Nov. 4, increased to 74 from last year's 28, reflecting the growing interest in the rapidly-emerging Caribbean economy among business circle here.

In addition to the 2016 Korea Week in Cuba, KOTRA, which opened an office in Havana in 2005, organized the 1st Cuba-Korea Business Committee forum Sunday in cooperation with the Federation of Korean Industries (FKI), inviting 150 business leaders and government officials from both sides.

"Bilateral business exchanges between the two countries have picked up pace in recent months," KOTRA CEO Kim Jae-hong said at the forum. "KOTRA will do its part in promoting bilateral cooperation in the areas of infrastructure construction, healthcare, energy and tourism."

In May, a group of Cuban business leaders, led by Orlando Hernandez Guillen, president of the Cuba Chamber of Commerce, visited Korea. A Cuban investment forum was held at the time, attracting keen attention from builders, utility firms and others looking for business opportunities in the island nation.

FKI Chairman Huh Chang-soo also said the 1st Cuba-Korea Business Committee meeting will serve as a stepping stone to further exchanges among Korean and Cuban business leaders.

"It is meaningful that the committee is the first private-sector channel, bridging the two countries that haven't yet set up formal diplomatic relations," Huh said. "The committee should play a crucial role in the future."

On Sunday, KOTRA and FKI also held the Cuba-Korea Friendship Night reception, inviting more than 170 Cuban business leaders.

In addition, 22 local firms producing consumer electronics, auto parts and medical equipment are taking part in the 2016 Havana International Fair from Oct. 31 to Nov. 4, looking to sign deals with Cuban buyers.

In 2015, trade between Cuba and Korea totaled only $57 million, but the amount is set to increase at a rapid pace in the coming years as the Caribbean nation, rich in nickel and other minerals, is seeking to expand dealings with other nations since it normalized relations with the United States.

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