INTERVIEW Serbia's trade minister seeks to sign economic partnership agreement with Korea to bolster trade, investment
Serbia's Minister of Internal and Foreign Trade Tomislav Momirovic / Courtesy of Embassy of Serbia in Seoul
Serbia's Minister of Internal and Foreign Trade Tomislav Momirovic kicked off negotiations for an economic partnership agreement (EPA) with Korea during his visit to the country late last month, aiming to bolster economic ties between Serbia nad Korea.
Momirovic stressed how this agreement could shape the future of Korea-Serbia relations, create new opportunities and address key areas of cooperation.
The minister emphasized that Serbia is constantly creating better conditions for the business community to invest in the country.
"New markets are being opened up to the products from Serbia through a wide network of free trade agreements that Serbia has signed with major trading partners," he said in a written interview with The Korea Times.
Recognizing the remarkable progress in bilateral trade and investment since the establishment of diplomatic ties in 1989, Momirovic is convinced that the EPA will play a significant role in further promoting trade and investment with Korea.
"This Agreement should lead to an increase in exports, expansion of investment and production capacities, as well as increasing competitiveness and overall economic activity," he added.
"This Agreement will provide preferential access to the big and wealthy market of Korea for Serbian agricultural and industrial products. At the same time, we are certain that this Agreement will provide incentives to many Korean companies to establish their business in Serbia."
He underscored Serbia's strategic location at the crossroads between the West and the East, providing an optimal position for delivering finished products to global markets. Additionally, Serbia offers a developed infrastructure, efficient administrative procedures and a skilled labor force.
Discussing the key areas of focus during the negotiations, Momirovic emphasized Serbia's priority on developing the industrial sector and positioning the country into global value chains (GVCs).
"For small economies, linking up with GVCs that account for nearly 80 percent of global trade could be greatly beneficial for promoting exports and integrating into global trade without having to build expertise in all aspects of (the) production of a good," he explained.
Assessing the current state of economic relations between Korea and Serbia, Momirovic highlighted the significant growth in trade over the past decade.
"Compared to 2012, the volume of total trade exchange in goods at the end of 2023 increased almost five times. The export from Serbia to Korea multiplied 150 times, while the import was 2.5 times higher," he said.
He also mentioned the signing of the bilateral Agreement for the Promotion and Protection of Investments last September, which sent "a good signal to investors from Korea with the aim to provide a new impulse to their investments in our country."
To further enhance economic cooperation, Momirovic expressed Serbia's interest in attracting more foreign direct investments (FDIs) from Korea.
"Bearing in mind the strength of the Korean economy, its stability and competitiveness, highly developed infrastructure, and widespread use of innovative technologies, Serbia is very interested in attracting more FDIs from Korea," he said.
He pointed to sectors such as electronics, automotive, robotics, artificial intelligence and IT as areas where new Korean investors are particularly welcome.
The minister outlined several factors that make Serbia an attractive destination for Korean investors and businesses.
These include Serbia's geographical position, large market connections with the European Union, a highly educated workforce, industrial experience, strong state incentives and stability. He noted that Serbia is already a manufacturing base for global companies and is a convenient location for R&D centers.
"The government of the Republic of Serbia, as well as all relevant Serbian institutions, are ready to provide appropriate institutional support to create conditions for the companies of both countries to do their business without obstacles," he said.
Among sectors holding promise for future growth, Momirovic singled out technology and innovation, the automotive industry, agriculture and food processing, renewable energy and infrastructure and construction.
He pointed out Serbia's developing tech ecosystem, growing automotive manufacturing hub and investments in renewable energy sources.
"Korean companies specialized in software, AI, cybersecurity, and automotive parts could find ample opportunities for collaboration and investment," he said.
Beyond the EPA, Momirovic sees potential for new or expanded cooperation in areas such as collaborative R&D projects in cutting-edge technologies, smart city solutions, environmental protection, health care and cultural exchanges.
"Serbia is interested in attracting Korean tourists by promoting its natural beauty, cultural landmarks and historical sites," he said.