By Yoon Won-sup
Staff Reporter
The top envoy of Panama in Seoul highly recommended Korea to join the construction boom taking place in his country thanks to the Panama Canal expansion project.
``We now have a great construction boom in Panama just like Korea did in the past,’’ Panamanian Ambassador Daniel Abrego told The Korea Times. ``So this is the right time for Koreans to invest in Panama.’’
But the 55-year-old ambassador felt sorry to see Koreans showing little interest in investing in Panama even though there are lots of business opportunities.
The Panamanian government will spend $5.2 billion to expand the canal until 2014 but no Korean companies participated even in the bidding process of the project.
Abrego said he can’t understand why Korea, which has advanced construction and shipbuilding industries, does not participate in the historical project.
``When Panamanian Vice President Samuel Lewis Navarro visited Seoul in November 2005, he held a seminar with relevant Korean companies, encouraging them to join the boom,’’ the ambassador recalled. ``But it was in vain.’’
Abrego thought Koreans are afraid of investing in Panama because they prefer closer Asian countries such as China. But he said that companies of other countries, that see the potential of Panama, do not miss this opportunity.
``I’m sorry to compare Korea with other countries. But, for example, Japanese companies offered `financial aid’ to Panama even before the bidding process, in order to join the project,’’ he continued. ``The reason why they were so active in participating is that they realized the importance of the canal expansion.’’’
Actually, Panama sees the expansion as the greatest-ever project for the nation. Currently, about half of the government’s revenue comes from the canal and the profit is expected to go up, according to the ambassador.
The United States had operated the canal from 1914 to 1999, and in return paid $35,000 to $1 million to Panama per year. But the first year Panama took back and operated the canal, it earned $350 million, which is more than all the money the United States paid, he said.
``In this sense, it was unfair that the United States paid us so little, but thanks to increased income, we can put more money into education, healthcare and welfare,’’ he said. ``Particularly, with more education opportunities for our children, Panama will thrive in the near future.’’
Abrego stressed that the construction boom is not just the canal expansion itself but other support facilities. That’s why not only big companies but also small companies including individual businessmen can join the boom investing in industries such as hotels, resorts, restaurants, supermarkets and real estate.
In order to show how profitable it is to invest in Panama, he said, ``If you invest $700 for one-square meter of a construction project, you can sell it at $1,400 when construction is completed.’’
Asked if the prices are going up in Panama because of the boom, he said, ``Of course, the prices are increasing fast, and that shows it is the right time to invest in Panama.’’
The ambassador didn’t fail to mention that his country is the No. 2 nation in which retirees move, thanks to a favorable environment for foreigners.
Foreigners can own property such as land or buildings in their name or in their company’s name. More importantly, if they save a certain amount of money for a certain period (time deposit), they are exempt from income tax, Abrego added. Moreover, the currency of Panama is the U.S. dollar.
``That’s how we became an attractive destination for retirees, and they are mainly from the United States, Canada and Europe,’’ he said.
Lastly, he wanted Koreans to keep in mind one thing before they go to Panama for business or tourism purposes. It is ``slow eating.’’
``When I first came to Korea as ambassador in May 2005, I had difficulty in eating. We, Panamanians, who do not collectively leave the office at noon for lunch, have meal at their preferred time,’’ he said. ``Plus, we usually have dinner at 8 p.m. but here 6 p.m. For me, I can’t eat until 7:30 p.m.’’
He also said that there is a time for conversation after dinner at least for one hour, which is called ``sobremesa.’’ So the dinner, which begins at 8 p.m., lasts sometimes until midnight in Panama but in Korea everybody seems to finish dinner quickly and go home early, he added.