By Jung Sung-ki
Staff Reporter
The Latvian prime minister expressed hope Tuesday that his country and South Korea would establish a strong economic partnership in the future.
Ivars Godmanis, 58, who was on a four-day visit here from Sunday, said in an interview that the Latvian government is discussing a railway connection with China, which could help transport South Korea products to European nations more easily than shipping them by sea.
``We have had discussions here about our proposal for logistics support and transportation of Korean goods to the Baltic region and Europe,'' Godmanis, the highest-level Latvian official to visit South Korea since the two countries established diplomatic ties in 1991, said, referring to talks with his South Korean counterpart Han Seung-soo in Seoul Monday.
``This is just an idea, but we're realistically and seriously talking to the Chinese government regarding the railway connection,'' he said, expecting it would take 12 to 15 days to transport goods from South Korea to Europe by railway, far shorter than the 35 days by sea.
The railway, once approved by the Beijing government, would link a western province of China and ports of Latvia and other European nations bypassing the Central Asian region, said the prime minister.
Other fields for bilateral cooperation and trade include, the Latvian leader noted, the forestry and milk processing industry.
``As for whole industry in the world, it's not an easy time, so we're trying to find partners, not only nearby exporters but also ones those located further away,'' he said.
He added Latvia would fully support a free trade agreement (FTA) between South Korea and the European Union (EU). Latvia joined the EU in 2004.
Seoul has been in talks with the 27-nation economic bloc over a trade pact after it signed an FTA with the United States in 2007. In the latest talks in Seoul, Tuesday, both sides said they made ``significant progress'' though more negotiations are needed.
Godmains asked more South Korean firms to invest in his nation, where he said the business environment is ``liberal,'' including low taxes on capital income.
Samsung and LG opened subsidiaries in the Latvian capital of Riga in 1999 and 2005, respectively, making big profits in the Baltic area, according to Seoul's Ministry of Foreign Affairs and Trade.
Samsung Electronics, for example, earned more than $220 million in profits in 2006 and $300 million in 2007, it said. The company has the biggest market share for high-tech electronic products such as LCD and digital television sets, it said.
Latvia is South Korea's 93rd trade partner. Trade between the two nations, while growing, remains relatively small. As of October 2008, bilateral trade quintupled to $117 million from 2003's $27 million.
Wood and wooden products dominate Latvia's exports to South Korea. Latvia imports South Korea's vehicles, plastic and rubber articles as well as machinery, home appliances and electronic equipment.
Latvia, once referred to as a Baltic tiger for its rapid economic growth following its entry into the European Union in 2004, recently appealed to the International Monetary Fund (IMF) for a bailout as its economy has been battered by the global financial meltdown.
Cheong Wa Dae officials said Godmanis asked about how South Korea overcame the financial crisis that struck the country a decade ago during a courtesy call on President Lee Myung-bak.
Seoul was placed under assistance and monitoring by the IMF after it was hit by the currency crisis that also dealt a blow to most other major economies in the region. The country, however, paid back all its relief funds, becoming one of the first nations to beat the slump that continued for years in other countries.
Godmanis delivered his President's invitation for Lee to visit Latvia. He is scheduled to leave for Tokyo Wednesday.