Azernews.Az

By Leman Mammadova

Azerbaijan inks new agreements with South Korea to broaden the scope of economic cooperation, increase trade between the countries and exchange experience in relevant areas.

Azerbaijan Investment and Export Promotion Fund (AZPROMO) and South Korean Importers Association (KOIMA) signed a memorandum of understanding on cooperation within the framework of the Azerbaijani-South Korean business forum held in Baku, on September 30.

The document was signed by Yusif Abdullayev, Acting Head of AZPROMO, and Kwang-hee Hong, Chairman of KOIMA.

The memorandum envisages the cooperation in the field of business, investment, export-import operations between Azerbaijan and South Korea.

Yusif Abdullayev said that the memorandum provides that KOIMA will assist in the export of Azerbaijani goods to South Korea. “Food products, including juices, jams, tea, alcoholic beverages, are among the goods that are of interest to South Korean. In addition, chemical industry products are of great interest.”

During the forum, Abdullayev pointed to the great potential for developing trade-economic cooperation, and added that South Korea could turn into a major foreign market for Azerbaijan.

“We look forward to deepening ties with South Korea in many sectors, including industry, the petrochemical sector, the production of building materials and other fields. We plan to actively participate in exhibitions of international importance, which will be held in South Korea this and upcoming years, to present local products, as well as to exchange experiences with South Korean partners,” he said.

He pointed out that Azerbaijan plans to organize a business mission to South Korea in 2020. “The South Korean market is large, the purchasing power of the population is high, and in this regard, South Korea may be of interest to exporters of Azerbaijani goods.”

He added that Azerbaijani companies are planning to participate in a food exhibition in South Korea to be held in 2020. This step is aimed at diversifying the supply of Azerbaijani products to foreign markets.”

He stressed that Azerbaijan is interested in strengthening trade and economic relations, and attracting South Korean business to Azerbaijan, as well as expanding ties in entrepreneurship.

Speaking at the event, Kwang-hee Hong, noted that as one of the developed countries in the region, Azerbaijan is attractive to South Korea in terms of bilateral cooperation in business, investment, and in many other areas.

He further stressed that South Korea regards Azerbaijan not only as a trade and economic partner, but also as a strategic partner.

“We are interested in further strengthening bilateral ties and expect that the current mission of the South Korean delegation to Azerbaijan will serve for even greater interaction between the two countries and will become a kind of incentive for building new relations between the business circles,” he said.

On the sidelines of the business forum, Kwang-hee Hong pointed out that South Korea is interested in supplying competitive products from Azerbaijan. “First of all we are talking about agricultural products. As the agricultural industry has been one of the most dynamically developing areas in Azerbaijan in recent years, we offer Azerbaijani entrepreneurs to be more active, to export their products to South Korea and to participate in exhibitions.”

Referring to the upcoming exhibition in South Korea, he invited Azerbaijani companies involved in the agricultural sector, in the field of small and medium-sized businesses, in the production and processing of products.

In his words, presently, dozens of South Korean companies operate in Azerbaijan in various sectors of the economy.

“We believe that this platform needs to be developed in the future in order to strengthen the bilateral interaction potential. Both countries should use all available opportunities for the growth of bilateral trade. Organization of business forums is one of the real platforms aimed at deepening bilateral ties and building relationships in many areas of trade and economics,” he added.

In his speech, Kim Tong Op, South Korean Ambassador to Azerbaijan, emphasized that South Korea is interested in importing agricultural and other products from Azerbaijan.

He noted that there is great potential for cooperation in many areas of trade, economy and business between the two countries.

“We look forward to closer cooperation in the field of agricultural imports from Azerbaijan,” South Korean Ambassador said.

Noting last year’s trade at $227 million, he stressed that this volume should be increased in the future.

“Azerbaijan is a dynamically developing country, attractive for cooperation for many countries, one of which is South Korea,” he added.

The business forum was attended by representatives of eight South Korean companies operating in the field of business, trade, industry, textiles, petrochemicals and other areas of the economy.

As part of the business forum, B2B meetings were held between local entrepreneurs and representatives of South Korean companies.

So far, South Korea has invested about $180 million in the Azerbaijani economy, and Azerbaijan has invested $474 million in South Korea. At present, 74 South Korean companies are registered in Azerbaijan that participate as contractors in government projects.

This year, Azerbaijan and South Korea signed a framework agreement on grant support that envisages the continuation of joint cooperation on technical assistance and grant support between the two countries.

Presently, the two countries broaden bilateral cooperation almost in all sectors. In this regard, it is important to mention agricultural sector. Azerbaijan studies South Korean experience in supply of agricultural products.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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