By Kevin Conroy
As Korea expressed its condolences to Norway and condemned the attacks on its citizens, it is easy to think terrorism is a remote threat, or when it occurs, little could have prevented it. Some, including those that write here, suggest terrorist threats are so rare that people tend to ignore them.
However, only last month a terrorist group operating in Iraq threatened Korean construction companies. As Korean businesses, NGOs and individuals benefit from investment opportunities overseas, the warning was a reminder of the political and security risks to Korean nationals and businesses operating around the world.
It was on July 17 that Kataib Hizbolla, the Iranian-backed Shia extremist group based in Baghdad, issued a statement on its website warning companies not to continue working on the Mubarak al-Kabir port in Kuwait. Since May, Hyundai and other South Korean companies have led construction efforts at this site, reportedly worth $1.1 billion.
With terrorist groups once again gaining momentum in Iraq and U.S. forces withdrawing at the yearend, a terrorist attack on Korean firms in Kuwait could seriously harm the $11.9-billion bilateral trade between the two nations, as well as endanger the lives of Korean nationals.
The threat to Korean assets in Kuwait is yet to reach serious levels. However the risk from attacks is not negligible. Last year two hoax bomb threats to the stock market and a shopping mall brought areas of Kuwait City to a standstill. In 2009, Kuwaiti police defused multiple bombs across the city.
This year South Korean firms are the largest foreign investors in Iraq. Worryingly, as the U.S. thrashes out a deal with the government to withdraw troops at the end of this year, it is doubtful that Iraq’s security forces can fill the looming security vacuum. As U.S. troops leave, militant groups are unlikely to give up on violence. Instead, under less pressure from security forces, they will expand their capabilities and target what it sees as threats to Iraq’s independence, including foreign investors from South Korea.
Already Shia insurgent groups have stepped up attacks across the country. These groups likely carried out the nine missile attacks on the International Zone in Baghdad this year, four of which occurred over the past three weeks. This compares with only two attacks over the same period in 2010. In addition, attacks on civilians, U.S. forces, and Iraqi security and government officials have inflicted over 100 fatalities since the beginning of July.
The terrorist group’s warning to Korean companies constructing the Mubarak al-Kabir port also capitalised on rising political tensions between Kuwait and Iraq. Since at least May, Iraq’s parliament has been criticized for the port development, describing it as a ``threat” to Iraq’s oil and banking industry. This may have adverse effects on Korean firms wishing to invest in both countries. In the worst-case scenario, it may encourage militant groups to seek out Korean targets. This certainly raises security concerns for Hyundai and other companies operating there.
This may all still seem remote, but terrorist attacks have an impact on the welfare of Korean citizens. It can harm a company’s profits, increase insurance premiums, or even endanger the lives of employees. This has the knock-on effect at home of increasing the price of consumer goods, including food, as well as potentially raising taxes and hampering employment. Most of all, without intelligent planning and robust foresight, the threat of terrorism can limit investment opportunities and economic growth.
Unlike a plane crash or natural disasters such as floods, individuals carry out terrorist attacks with intent and foresight, and usually seek to harm others for their own benefit. We may never eliminate those determined to do so altogether. But with a mature approach, which starts with acknowledging existing risks, terrorism can be minimised and mitigated.
Kevin Conroy is a political and security risk consultant specialising in terrorism based in London and South Korea. He can be contacted at kevinconroy@hotmail.co.uk, and is on LinkedIn.