ECONOMYNEXT – South Korea has expressed interest in investment opportunities in Sri Lanka’s renewable energy (RE) sector and graphite, which has a strong demand in the East Asian nation.
Kyungjin Song, Country Representative of the Asia Foundation Korea Office at a recent discussion titled “Economic Security in the Indian Ocean Region; Prospects for Collaboration between Sri Lanka and Republic of Korea” in Colombo last week suggested opportunities in renewable energy investments.
She also noted that Sri Lanka’s graphite, an essential raw material for South Korea’s semiconductor, battery, and automobile industries, could be a valuable resource for future cooperation.
The discussion, facilitated by Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), was aimed at examining the lessons Sri Lanka could learn from Korea’s experience in science and technological innovation.
Miyon Lee, Korean Ambassador to Sri Lanka highlighted Korea’s historical and ongoing efforts in transforming its economy globally, with a focus on economic security to protect supply chains and ensure technological leadership.
She identified Intellectual Property Rights (IPR) protection and the development of an innovation ecosystem as the two critical elements for achieving economic transformation. #
Lee outlined three key aspects of Korea’s economic transformation. Benefits from the global liberal market system, rule of law, and democratic values. the crucial role in driving innovation and resilience played by private sector and civil society, and effective political leadership and bureaucratic efficiency essential for implementing necessary policies.
Sri Lanka and South Korea have maintained a strong bilateral relationship characterized by cooperation in various sectors, including trade, investment, labor, and development assistance.
South Korea’s economic success has often been cited by experts as a model for Sri Lanka’s own development aspirations.
South Korea is an important trading partner for Sri Lanka, with the two countries engaging in the exchange of goods such as textiles, garments, rubber products, and electronics. Sri Lanka exports mainly apparel, rubber, and tea to South Korea, while importing electronics, machinery, and vehicles.
South Korean companies have also made investments in Sri Lanka, particularly in the manufacturing sector. The East Asian nation has been involved in various development projects in Sri Lanka, particularly in infrastructure development, where Korean companies have played a role in building roads, bridges, and other key infrastructure.
The two countries don’t have a bilateral trade agreement at present, although they are members of regional trade agreements. Sri Lanka President Ranil Wickremesinghe and his South Korean counterpart have discussed finalizing a trade agreement and enhancing investment relations between the two nations, when they met on the sidelines of the UN General Assembly sessions in New York last year.
In recent months Sri Lanka has sought to increase the export of labour to South Korea. (Colombo/August 28/2024)