Often found at theaters and museums, Kwon Mee-yoo has covered a wide range of cultural fields from K-pop and dramas to theater and fine art for over a decade. Now as K-Culture Desk editor, she tries to connect Korean culture with global readers through fresh perspectives.
Cambodia hopes to attract more investment via Korea-Cambodia FTA
Korea's Trade Minister Yeo Han-koo, right, and his Cambodian counterpart, Pan Sorasak, on screen, pose after signing the two nations' free trade agreement in a virtual ceremony, Oct. 26. Courtesy of Ministry of Trade, Industry and Energy
By Kwon Mee-yoo
By Kwon Mee-yoo
Korea and Cambodia inked a free trade agreement (FTA), Oct. 26, paving the way for strengthened ties between the two countries as well as helping the economic recovery from the pandemic.
The signing ceremony was held via videoconferencing amid the COVID-19 situation. Cambodian Minister of Commerce Pan Sorasak expressed regrets over being unable to celebrate the special occasion in person.
"Today's signing will be another milestone in strengthening Korea-Cambodia relations despite the difficult challenges of the pandemic," Minister Pan said during the ceremony.
"It is also the desire of both parties that this collateral FTA will further enhance and deepen the partnership between our two economies by optimizing our regional supply chains in mutually beneficial manners."
The Korea-Cambodia FTA was initiated back in March 2019 when Korean President Moon Jae-in visited Cambodia. After two years of assessment and negotiation, the two countries struck a deal in February 2021.
Under the FTA, Cambodia will remove tariffs on 93.8 percent of products, including Korea's major exports to Cambodia ― cars, electronics and computers.
Korea will lift tariffs on 95.6 percent of all imports from Cambodia. Cambodia's main exports to Korea are agricultural and textile products.
Korea already signed an FTA with ASEAN, of which Cambodia is a member, and a Regional Comprehensive Economic Partnership (RCEP), but the bilateral FTA is expected to further enhance economic and social cooperation between Korea and Cambodia.
"Once in effect, our bilateral FTA will serve as a solid foundation for strengthening our economic partnership and provide the much needed impetus to expand and intensify supply chains across Korea, Cambodia and the Greater Mekong region," Korea's Trade Minister Yeo Han-koo said.
"The Korea-Cambodia FTA will serve as a highway for economic cooperation, linking our two countries, allowing free and fast movement of goods and people in both directions, paving the way to shared prosperity and ushering in a brighter future through more trade, more investment and closer cooperation."
Cambodian Ambassador to Korea Chring Botum Rangsay / Courtesy of Cambodian Embassy in Korea
The Korea-Cambodia FTA not just strengthens trade and investment, but also opens up other new opportunities for the two countries.
"For Cambodia, we're hoping to promote more trade in terms of agriculture, textile, clothing and manufacturing, and at the same time we hope to get more investment in the area of technology and automobiles so Korea can transfer technology and equipment to Cambodia," Cambodian Ambassador to Korea Chring Botum Rangsay told The Korea Times after the signing ceremony.
"Cambodia and Korea have a strong relationship dating back to the early 2000s. We share that special bond in the connection between people to people and trade exchanges. Now we hope to promote that bond and increase cooperation in terms of trade so that we can give opportunity to strengthen economic wellbeing and help each other during this crisis of the pandemic."
The Korea-Cambodia FTA is the first of its kind to include clauses on continued exchanges during pandemics.
"I think this couldn't have come at a better time. The struggle to overcome the pandemic would give an opportunity for both countries to complement each other and promote economy and trade to move out of the economic crisis that has been posed by the pandemic,” Chring said.
"This clause is specifying the solution to overcome this pandemic for both countries, which means that we are putting people and the prosperity of both countries at the top of our priorities."
Ambassador Chring noted that Cambodia looks to boost agricultural exports to Korea.
"In Cambodia, we have all-year-round summer so we can definitely complement fruit and vegetable supplies to Korea during winter at a reasonable price," she said.
The ambassador also emphasized Cambodia as a good place of investment for Korean companies.
"We have a pool of human resources around 30 years old, so that's our strength. The majority of the population are in the working age and they're also very dedicated workers, as Korea has already known. Cambodian migrant workers to Korea are dedicated, hardworking and quick learners. So in that way, we're hoping that Korean investors will look to Cambodia to invest," she said.
"Furthermore, we have a new investment law that provides a lot of incentive for foreign investors. We will have an online forum to discuss the investment law and we are inviting interested parties in Korea to attend this forum."
The Cambodian Embassy in Seoul also plans to host a hybrid forum before the FTA goes into effect in early 2022 to share information about the FTA.