“Thanks to the Hungarian government’s investment-promoting economic policy and the balanced business environment, an increasing proportion of South Korean enterprises are investing in Hungary each year”, Minister of Finance Mihály Varga highlighted at the third session of the Hungarian-Korean Joint Economic Committee in Budapest on Thursday.
“The Hungarian government has signed a strategic agreement with the Korean Development Bank, and as a result of the cooperation the bank plans to open a regional headquarters in Hungary and will be continuing to promote Korean investment”, the Minister told reporters.
At the meeting, which was co-chaired by Mihály Varga and Korean Minister of Trade, Industry and Energy Sung Yun-mo, the parties agreed that Hungary is now a major investment destination for Korean corporations. “A continuous bridgehead that opens the way to the whole Central and Eastern European region and the whole European Union market within the fields of production, services and logistics alike”, the Minister of Finance added, noting that over the past three years stable economic relations have developed between Hungary and the Republic of Korea.
“Regarding Asia, Hungary realises its second highest level of trade flow with South Korea, following China, which increased by 46 percent in 2018 to reach 2.6 billion dollars, and the increasing trend has continued this year. In the first six months of 2019, South Korea was Hungary’s largest foreign investor with relation to inflowing working capital; there are some 50 Korean enterprises operating in Hungary, providing employment to over 10 thousand people”, Mr. Varga explained. “The Hungarian government is committed to further deepening cooperation within the fields of science and industrial technologies, the health industry and tax administration”, he stated.
“Economic relations are also being reinforced by the launching of a direct air passenger service between Budapest and Seoul, and by the introduction of an incubation programme in South Korea aimed at supporting the appearance of Hungarian start-ups on the Korean market. In addition, it is also important to come to know each other’s cultures”, Mr. Varga emphasised, highlighting that the tightening of relations is also indicated by the fact that a Hungarian Cultural Institute was opened in Seoul on Thursday.
In addition to the agreement with the Korean Development Bank, following the meeting of the joint committee an agreement was also concluded between Hungary’s National Research, Development and Innovation Office and the Korean Institute for Technological Development.
(Ministry of Finance)
