By Kang Hyun-kyung
Korea and Peru agreed to upgrade bilateral relations to a comprehensive strategic partnership during a summit in Seoul Thursday.
President Lee Myung-bak and his Peruvian counterpart Ollanta Humala exchanged views on ways to bolster trade, investment, cooperation in natural resources and development assistance. The talks followed a first meeting in New York last September.
This is the Peruvian leader’s first visit to Korea since he was sworn in as president in July last year.
Humala arrived in Seoul Thursday for a three-day state visit to Korea. He is scheduled to attend the Yeosu Expo that will have its grand opening Saturday and go to an industrial complex in the southeastern coastal city of Ulsan. He will also meet Korean business leaders to try and attract investment before leaving Seoul Saturday.
The resource-rich nation with nearly $6,000 in per capita gross domestic product is an important trade partner to Korea.
It is one of the fastest-growing economies in Latin America, as well as Korea’s largest investment location on the continent.
Several firms, including LG, Samsung, SK Energy and Korea National Oil Corporation, have invested a total of nearly $17.7 billion in the natural resources, energy and other sectors there.
After Humala, a left-wing politician, won the presidential election last year international investors, including South Koreans, were wary about policy prospects because of his vision.
In the 2006 election, Humala paid for his outspoken admiration of Venezuelan President Hugo Chavez, calling him a mentor. But in the 2011 election, he toned it down, saying “Peru has changed and I’ve changed.” He also tried to assure investors by promising a careful fiscal policy.
Despite this, his pro-working class policy had left South Korean investors uneasy about his policy in the wake of the presidential election. Stock prices fell sharply after his win, showing international investors were wary of possible left-wing policy initiatives.
After taking office, the Peruvian leader restored investor confidence by vowing to seek moderate left-wing policies which were pursued by Brazil.
Some 1,200 South Koreans are living in Peru, working in the garment and fabric industry, selling second-hand cars or engaged in the fishery industry.