The fact that South-Korea is interested in and ready to welcome Hungarian enterprises shows the success of the South-Korean-Hungarian Knowledge Sharing Programme (KSP), Deputy State Secretary for International Economic Relations Antal Nikoletti said at a press conference that followed a presentation of the first-year results of this economic consultation programme.
KSP Lead Consultant and former South-Korean Ambassador to Hungary Dae Won Su stressed that as global markets have been shifting from a capital-based economic model to a knowledge-based one, South-Korea decided in 2004 to establish KSP, through which 600 projects have already been completed in 46 countries.
Antal Nikoletti pointed out that South Korea is having a successful economic model and it has managed to evolve – within a relatively short period of time -- from an under-developed economy into one of the most highly industrialized countries in the world. The country is a good example for long-term strategic thinking and implementing changes through national consensus, he added.
The Deputy State Secretary also said that the main priority of the first year was to stimulate FDI by Hungarian enterprises. Hungary is a small country characterized by capital inflow, while South-Korea is predominantly a country with large outflows. South-Korean companies have thus far invested more than USD 2bn and employed 25 thousand people in Hungary. Large enterprises, such as Samsung or Hankook, are regarded as stable investors with strong commitment to the country. He singled out KDB Bank as an enterprise which brought its regional centre to Hungary. In South-Korea, he stated, there is even a state agency for promoting imports. South-Korea mainly exports components to Hungary, while the bulk of Hungarian exports consists of food industry and agricultural products. Of the latter, much more could be sold, for example frozen meat and corn.
Dae Won Su emphasised that the first year of the programme was dedicated to research and gaining experiences. In the future, the focus will be turned to clear-cut fields and activities. He expressed his opinion that relations of the two countries are improving and he is optimistic with regard to the programme’s future.
The Lead Consultant said that Hungary is an important partner for South-Korea as it was the first country from the eastern bloc that -- following the regime change – established diplomatic relations with South-Korea. Besides that, strong cultural relations also make cooperation and learning from each other easier, Dae Won Su pointed out.
According to data compiled by the Hungarian Central Statistical Office (KSH), South Korea was 35th on the ranking of Hungary’s export partners and 19th regarding imports in 2013. Korean statistics show that in 2013 Hungary ranked as 35th and 61st concerning the volume of Korean exports and imports, respectively. In Central and Eastern Europe, however, Hungary is Korea’s third largest trade partner.
(Ministry for National Economy)
