Korea to bolster infrastructure cooperation with Egypt

Minister for Land, Infrastructure and Transport Noh Hyeong-ouk, left, and Transport Minister of Egypt Kamel Al-Wazir hold copies of a signed memorandum of understanding, Feb. 24. Courtesy of Ministry of Land, Infrastructure and Transport

By Lee Kyung-min

Korea is seeking to bolster economic cooperation, including infrastructure building, following the signing of a memorandum of understanding (MOU) with Egypt. The transport minister recently visited Egypt to help transport businesses bolster their competitiveness in the country, an important strategic partner of Korea.

According to the Ministry of Land, Infrastructure and Transport, minister Noh Hyeong-ouk visited Egypt from Wednesday until Friday (local time) in a bid to bolster economic cooperation, including infrastructure building between the two countries.

The three-day visit was a follow-up to a memorandum of understanding (MOU) in the amount of $1 billion (1.2 trillion won) signed by President Moon Jae-In during his state visit trip to Egypt in January of last year.

More Korean firms will be able to expand their market presence in Egypt, propped up by a 1 trillion-won railway collaboration in the construction of Cairo Metro Lines 1, 2 and 3 since 2012.

Examples include Hyundai Rotem, the rail, defense and eco plant solutions affiliate of Hyundai Motor Group, and DAEA TI, a traffic management system service provider, both of which are major partners in the railway modernization project led by the Egyptian government.

Korea provided aid of $360 billion to Egypt in May of last year through the Economic Development Cooperation Fund (EDCF), set up in 1987 to provide economic assistance to developing countries. The funds are being used to provide long-term loans at cheap rates and increased economic exchange with other countries.

“Transport businesses will be able to bolster their competitiveness not only in Egypt, but further into the Middle East and Africa,” the ministry said.

Egypt has a population of 103 million ― the largest in the Arab world ― and has geopolitical strengths including the Suez Canal, an artificial sea-level waterway connecting the Mediterranean Sea to the Red Sea. The ministry thus considers the country an important strategic partner for Korea to enter the Middle East and African markets.

Korea and Egypt established diplomatic relations in 1995 and have since maintained close cooperation in a variety of fields, including overseas construction, large state-run projects and intelligent transportation systems.

The cumulative overseas construction orders between the two nations have amounted to 6.2 trillion won since 1976, when Korean firms first won contracts for the country's infrastructure building projects.