Korea provides growth example for C. America

By Na Jeong-ju

Korea Times correspondent

PANAMA CITY ― South Korea and a group of Central American countries agreed Tuesday (local time) to boost their economic and political ties and cooperate closely to ensure the region's stable growth.

At the third summit between Korea and the Central American Integration System (SICA), an eight-member economic bloc, the two sides adopted a 13-point joint action plan aimed at reshaping their relations, especially in the areas of energy, infrastructure, information and technology as well as mineral resources development.

President Lee Myung-bak pledged to share Korea's growth experience and expand technology transfer to Central America to help the region become a new driver of global growth.

"South Korea was once a recipient of development aid, but has become a major donor. It is a unique example of the world's history," Lee said at the meeting. "We want to share our growth experience with you and contribute to the region's social and economic development."

Seoul plans to triple its Official Development Assistance of underdeveloped nations to 0.25 percent of the gross national income by 2015.

The country has included the issue of the widening global economic imbalance on the agenda for the Group of 20 Summit slated for Seoul in November and pledged to represent emerging and poor countries on the international stage.

Launched in 1993, SICA aims to promote economic, political, and cultural cooperation among Panama, Costa Rica, El Salvador, Nicaragua, the Dominican Republic, Guatemala, Honduras and Belize. Panama is currently holding the rotating presidency of the group.

President Lee arrived in Panama on Monday after a two-day visit to Toronto, Canada, where he co-chaired the G-20 meeting with Prime Minister Stephen Harper as host of the next meeting in Seoul.

On Wednesday, he flew to Mexico, the final leg of his weeklong trip, for a summit with Mexican President Felipe Calderon on bolstering economic ties.

Under the agreement between Korea and SICA, Korean firms will be allowed to play a greater role in the development of Central America by expanding and diversifying investment in energy, infrastructure, mineral resources development, and information and technology.

"SICA leaders shared the perception that it is important for South Korean firms to expand investment in the Central American region," they said in a joint statement.

Lee promised to expand financial and technical assistance for the development of Central America.

He also expressed the country's intent to join SICA as an observer to deepen cooperative relations between the two sides.

SICA leaders welcomed that step and instructed the secretary general of SICA to initialize related consultations.

According to Seoul officials, SICA grants the status to a country only when the group regards it as a strategic partner for regional development. Currently, only five non-American countries, Spain, Germany, Japan, Taiwan and Italy, are acting as observers.

Leaders of SICA also emphasized the importance of Seoul's joining of the Central American Bank for Economic Integration (CABEI). The two sides agreed to hold working-level talks to discuss concrete conditions for Korea's membership.

After the summit, meanwhile, the two sides issued a special declaration condemning North Korea for its attack on the South Korean Navy vessel Cheonan in March.

In the statement, SICA leaders called for the Cheonan incident to be resolved in accordance with international law and the U.N. Charter, pledging to cooperate with the international community to promote peace and stability in Northeast Asia.