KOTRA President Kang Says ‘Africa Emerges as Korea’s Export Breakthrough Market’

President Kang Kyung-sung of Korea Trade-Investment Promotion Agency (KOTRA) and other KOTRA participants gesture while posing at an extended strategy meeting of trade and investment in the African region in Cape Town, South Africa, on May 30. (Photo: KOTRA)

“Amid the realigning of global economic order, Africa is a land of opportunities for Korea, and now we have to explore Africa as Korea’s export breakthrough and its major strategic market, not a potential market,” said President Kang Kyung-sung of Korea Trade-Investment Promotion Agency (KOTRA).

President Kang made the remarks while presiding over an extended strategy meeting of trade and investment in the African region in Cape Town, South Africa, on May 30.

President Kim took stock of export support strategies to cope with rapidly changing trade environmental conditions and the realigning of supply chains and ways of transforming the African region into an export mainstay market with eight trade office heads of the African regional headquarters.

Korean companies badly need to explore new export breakthroughs, as the need for diversifying Korea’s export structure is mounting in the wake of growing trade protectionist moves and the realigning of supply chains.

The portion of exports in the African region stood at 1.4 percent of the nation’s total exports, but the region showed a potential for rapid growth, with some countries logging more than two-digit growth.

In particular, Rwanda, Ethiopia, Angola, Senegal and Tanzania saw exports surge 498 percent, 84 percent, 49 percent, 46 percent and 32 percent, respectively, emerging as promising emerging markets, attracting its values as strategic markets.

In this regard, KOTRA is accelerating efforts to help Korean companies make inroads into strategic African markets.

To this end, Korea International Trade Association, Korea Trade Insurance Corp. and other export related organizations, as well as successful local entrant leaders, have formed “One Team Korea Export Platform” to help Korean companies enter Africa and support shared growth with SMEs.

The “One Team Korea” system is in place with a focus on major export items, such as electrical materials and equipment, medical care and bio and nuclear power material and equipment.

One-stop support, such as responding to procurement company needs, negotiation meetings, consulting and after-sale management are also being made available.

KOTRA has been accelerating efforts to expand strategic centers to enter the African market through government-initiated development cooperation projects, such as the Official Development Assistance, Korea Knowledge Sharing Program (KSP) and the Economic Innovation Partnership Program (EIPP).

Of late, KOTRA has built a “connected export model,” linking development and export assistance in which KSP and EIPP leads the Economic Development Cooperation Fund (EDCF), which would be connected with exports and localization.

The Korean connected model departs from the conventional ODA approach based on assistance.

Africa is a market in which Korean companies have lower access to reliable information due to geological distance and cultural differences.

Against this background, KOTRA is offering information content tailored to meet corporate needs by analyzing information demand through a variety of channels, such as feedback from exhibitors at fairs, networking with local governments and institutions and SNS analyses.

KOTRA’s African regional headquarters plans to provide more than 3000 cases of information related to Africa during this year.

KOTRA President Kang Kyung-sung said, “With the holding of the upcoming G20 2025, now is a time when African changes into a strategic market and Korean companies’ sustainable market entry is in full swing through supply chain stability, project cooperation and development cooperation connected with export.”

“From now on, KOTRA will not only offer field-oriented strategy support, but also serve as a bridgehead to help Korean companies reap export outcomes by ramping up roles of providing timely and reliable market information,” he said.

KOTRA Hosts ‘K-FEZ Day in Europe’ to Attract FDIs

The Ministry of Trade, Industry and Energy (MOTIE) and KOTRA held “K-FEZ Day In Europe” from May 19 to May 24. FEZ stands for Free Economic Zones.

The workshops were designed to promote Korea’s investment appeals and FEZs in UK and German, the major European investment countries to Korea and support global network with Korean FEZ authorities.

The events comprised of the Korea-UK real estate investment attraction seminar, the Korea-Germany advanced industry roundtable, investors business negotiation sessions and the visiting of major investors and related organizations.

The MOTIE, KOTRA and IFEZ, UFEZ, BJFEZ, CBFEZ and GFEZ authorities participated and joined forces to attract FDIs.

The Korea-UK real estate investment attraction seminar, targeting 36 companies, including Leonard Design Architects and Pure Data Centres Group, took place on May 20.

Korean side opened a joint pavilion to promote “K-FEZ,” introduced major real estate projects in each FEZ and other outstanding investment opportunities in Korea.

The Korea-Germany advanced industry roundtable targeted FEZ accommodation companies and interested firms, such as Schenker, a logistics company, Prettl, an automotive parts maker, and Wilo Pump, a machinery parts maker.

FEZ authorities set up a joint pavilion to promote “K-FEZ” and introduced advanced industries in each FEZ.

Lee Hyun-jo, head of the Free Economic Zone Planning Office at MOTIE, said, “The events are expected to serve as an opportunity to spread K-FEZ’s standing in Europe and the government, KOTRA and local governments join forces to expand overseas IR activities tailored to meet each region’s characteristics.”

Commissioner Kim Tae-hyung of KOTRA Invest Korea said, “The events are designed to explore ways of promoting cooperation with major European investment countries, with the government and FEZ authorities aggressively cooperating and conducting publicity activities amid concerns about economic uncertainties, and we will provide support to ramp up FEZs’ standing as Korea’s representative investment gateways.”