Korea-Africa Summit: Country says it is ready to do business

Trade volume between Korea and Africa has increased dramatically. [iStockphoto]

Korean Government Representative for the 2024 Korea-Africa Summit, Jung Kihong, has said that all preparations have been made to establish a new framework of cooperation, which will pave the way for Korea to invest in Africa, allowing both regions to grow together.

Mr Jung while addressing journalists as part of the Korean Ministry of Culture, Sports and Tourism's Journalists Invitation Programme, held in advance of the summit, said Korea is prepared to share its expertise in digital education, technology, digitalisation, and agriculture with Africa's large and growing young population.

Jung added that diversification is key to sustainable development, and with Africa's population of 1.4 billion, Korea and Africa can work together to address global challenges.

At the summit scheduled for June 4th and 5th, South Korea will pursue Trade and Investment Promotion Frameworks (TIPFs), Economic Partnership Agreements (EPAs), and other agreements with African countries to expand economic cooperation and establish a foundation for trade collaboration.

This initiative aims to make African countries trading allies of Korea, benefiting both parties.

Additionally, the Korea Trade Investment Promotion Agency (KOTRA) stated that the Korean government will offer 50% cash grants and 50 per cent tax credits as incentives to foreign investors.

Myunglae Choi, Director, Investment Public Relations Team, Korea Trade Investment Promotion Agency (Kotra), said the Korean government would offer 50 per cent cash grant and 50 per cent tax credit for foreign investors as incentives.

The data shows that the annual trade volume between Korea and Africa has increased dramatically, from around $890 million in 1998 to $20.45 billion in 2022. Similarly, Korea-Africa investment has risen from $63 million in 1998 to around $700 million in 2019.

The summit is expected to serve as a platform for mutual prosperity, where Korea's development experience can contribute to Africa's growth, and Africa can also enhance Korea's development.

Africa is considered the continent of the future, with a young population and the establishment of the African Continental Free Trade Area (AfCFTA), making it a global economic powerhouse.