 |
By Martin Henkelmann
From the bustling streets of Seoul to the winding roads of Berlin, Germany and Korea share a long history that goes back to 1883 when the Treaty of Chemulpo (present-day Incheon) was signed.
This was part of Germany's industrialization and efforts to expand influence and trade in other regions of the world. However, due to historic twists and turns, the partnership between the two countries became especially relevant again only until the Korean War in 1953.
Back then, Germany which was still recovering from World War II, delivered a field hospital to Korea. In the 1960s, miners and nurses from Korea built a strong bridge between the two nations.
With Korea's rapid economic growth, the economic partnership between Germany and Korea gained further significance. Especially, the Free Trade Agreement between Korea and the European Union, which entered into force in 2011, has further strengthened the economic bond between Germany and Korea.
Germany is Korea's largest trading partner in the European Union (EU) and Korea is Germany's third largest trading partner in Asia. The trade volume has grown significantly, reaching about $34 billion in 2022, 25 percent of the total Korea-EU trade volume.
Not only the automotive sector, but machinery, pharmaceuticals and consumer goods have also gained importance. The economic and cultural relations between Germany and Korea are becoming increasingly intertwined and widened, with the rise of K-pop, movies, food and cosmetics that are particularly popular among the younger generation.
 |
| German President Frank-Walter Steinmeier, center, and Korean Prime Minister Han Duck-soo, second from right, pose with executives from German and Korean companies, during the Korean-German Business Round Table event at Grand Hyatt Seoul in this November 2022 file photo. Courtesy of Korean-German Chamber of Commerce and Industry |
As we look forward to the next level of the bilateral relationship, there are numerous opportunities for collaboration that can be identified.
Firstly, the energy sector offers promising prospects as Germany has long been a leader in renewable energy technology, and Korea is rapidly catching up. The Korean-German Chamber of Commerce and Industry (KGCCI), as the host of the official secretariat of the Korean-German Energy Partnership in Korea, is already noticing successful partnerships and collaborations emerging.
Another area for collaboration is digitalization.
We have been globally witnessing a rapid transformation, bringing numerous opportunities for businesses to increase efficiency and competitiveness. Such success of digitalization efforts depends on collaboration and knowledge sharing.
Incheon International Airport serves as one of the best examples of efficient and reliable airports in the world, particularly in terms of baggage handling. In fact, its advanced baggage handling system originates from Germany and has been integrated seamlessly into Korea's quick and efficient operation.
Such collaboration and knowledge sharing in the digitalization of German high-tech systems and Korea's efficiency can bring significant benefits to businesses and industries.
Furthermore, Germany is home to some of the world's leading biotech companies, whereas Korea has also emerged as a major player in the industry in recent years. There is much potential for collaboration as the two countries have strong research that can lead to further breakthroughs and innovations.
As we celebrate the 140th anniversary of this relationship, it is evident that the economic partnership between Germany and Korea will continue to flourish. Such confidence to jointly explore innovative and ambitious goals can only derive from the responsibility of governments, people and companies.
It is our duty to ensure that such collaboration prospers and benefits all parties. Businesses from both countries not only bring high-quality goods to the market but also make significant social contributions and betterment in the communities where they operate.
The writer is the president and CEO of the KGCCI.
