S. Korea to enhance natural resource cooperation with African countries

SEOUL, May 7 (Yonhap) -- South Korea will strengthen natural resource development
ties with African countries this year as part of its effort to secure a steady
supply of raw materials, the government said Thursday.
The Ministry of Knowledge Economy said South Korea plans to hold formal talks
with Algeria, Angola and Nigeria in the coming months with a view towards working
out mutually beneficial cooperative development programs and investment
arrangements.
"The African continent, which is relatively less developed compared to the Middle
East and Southeast Asia, can help Seoul reduce its overriding dependence on
foreign resources in the long run," a government official said. The continent is
known to hold large reserves of copper, zinc and various energy resources.
The government has been moving to acquire development rights or stakes in various
resources development ventures for the past several years to better insulate the
country from sudden fluctuations in international raw material prices.
Despite having a heavy-industry base, the country has to import most of its raw
materials and resources from abroad.
The ministry, in charge of trade promotion and resources development, added that
it will try to set up resource cooperation committees with Sudan, Mozambique and
Madagascar that can facilitate regular conferences and open a formal channel of
dialogue.
The collapse earlier this year of a massive farm deal between South Korean firm
Daewoo Logistics and the Malagasy government, however, raises some questions
about the viability of the new plan, especially in politically unstable nations.
Two-way trade between South Korea and African countries reached US$13.43 billion
in 2008, with exports rising 13.7 percent on-year to $9.38 billion. Imports,
however, fell 6.1 percent to $4.05 billion last year.
In the first four months of 2009, exports to Africa jumped 24.9 percent to $2.39
billion.
With the exception of Oceania, Africa is the only region where South Korean
exports grew coming into this year.
The government also plans to strengthen cooperative ties with South American
countries such as Colombia, Venezuela and Chile.
The ministry, meanwhile, said that it held the first economic cooperation
committee with Oman to seek ties in the information technology, construction,
education and farming sectors.
The vice-ministerial level meeting could facilitate trade and business
investment, the ministry said.
yonngong@yna.co.kr
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